Overview

• On July 4, Musk formalized the America Party on X to challenge the Republican and Democratic duopoly by targeting wasteful government spending and restoring voter choice
• President Trump called the third-party proposal “ridiculous,” saying it would only add confusion to America’s long-standing two-party system
• Tesla shares plunged nearly 7% in premarket trading as shareholders feared Musk’s political activism could derail key product rollouts and jeopardize subsidies
• Wedbush analyst Dan Ives and others cautioned that Musk’s deeper political involvement could prompt Tesla’s board to step in to safeguard shareholder interests
• Michael Cohen offered Musk advice on “political guerrilla warfare,” warning that confronting President Trump carried significant personal and reputational risks