Overview

• Elon Musk officially launched the America Party on July 5, pledging to caucus independently after an X poll showed nearly 65% support for breaking the two-party duopoly.
• Tesla shares fell about 7% in premarket trading Monday as investors questioned Musk’s ability to balance political ambitions with the automaker’s growth strategy.
• President Donald Trump dismissed the third-party effort as “ridiculous,” arguing that new parties only create confusion and signaling possible repercussions for Musk’s government contracts.
• Analysts warned that Musk’s renewed political engagement could divert his focus from Tesla operations and put key electric-vehicle subsidies at risk.
• The America Party plans to target 2–3 Senate seats and 8–10 House districts in 2026 to hold the balance of power, but it faces steep hurdles under U.S. winner-take-all and ballot-access rules.