Musk’s Plan to Launch ‘America Party’, His Clash with Trump Over the Bill, and the Damaging Impact on Tesla Could Mean…
Elon Musk is once again shaking America’s political landscape. Over the past week, the Tesla and SpaceX CEO hinted at launching a new political movement he calls the “America Party.” This comes after a bitter clash with President Donald Trump over the recently passed “Big Beautiful Bill,” which introduces sweeping tax and spending reforms.
Musk’s frustration centers on provisions in the bill that could severely weaken Tesla’s financial stability. By slashing electric vehicle tax credits and rolling back clean energy incentives, the legislation threatens Tesla’s profit margins. Analysts warn that Tesla’s Q1–Q2 2025 earnings could face significant shortfalls if the bill’s measures go into full effect.
At the same time, Trump has fired back at Musk’s criticism, publicly suggesting he may revoke federal contracts with SpaceX and cut subsidies, escalating tensions between the two billionaires. This political feud is sending shockwaves through the markets, with Tesla’s stock seeing increased volatility over the past few days.
Musk’s proposed America Party appears to aim at appealing to a mix of centrists and libertarians disillusioned with both Republicans and Democrats. However, political experts argue that creating a viable third party in the U.S. is notoriously difficult due to restrictive ballot access laws, entrenched two-party dynamics, and the enormous financial resources required.
Beyond politics, the feud could also damage Tesla’s relationship with federal agencies that have supported its growth for years. A deterioration in federal cooperation may slow Tesla’s access to permits, government incentives, and potentially lucrative defense contracts via SpaceX.
