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3w ago

Musk Unveils America Party as Tesla Shares Tumble

Investor concern that Musk’s political push could distract from Tesla’s core operations follows a steep stock decline tied to delivery shortfalls.

3D printed miniature depicting Elon Musk and words "The America Party" are seen in this illustration taken July 7, 2025. REUTERS/Dado Ruvic/Illustration
FILE - U.S. President Donald Trump, right, speaks during a news conference with Elon Musk in the Oval Office of the White House, Friday, May 30, 2025, in Washington. (AP Photo/Evan Vucci, File)
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Michael Cohen warns Elon Musk about the repercussions of criticizing Donald Trump.

Overview

  • Musk formally announced the America Party on July 5, aiming to secure just two to three Senate seats and eight to ten House districts in the 2026 midterms through independent caucusing.
  • Tesla shares tumbled about 7 percent on the first trading day after the announcement, wiping out roughly $15 billion of Musk’s net worth.
  • President Trump denounced the new party as “ridiculous,” warning that third-party bids only create “complete and total DISRUPTION & CHAOS.”
  • Analysts warn that winner-take-all elections and stringent ballot-access laws pose significant obstacles to third-party success.
  • Musk has yet to file formal Federal Election Commission paperwork, raising questions about the party’s legal standing as Tesla reported a 14 percent year-on-year drop in second-quarter deliveries.