AUSTIN, TX – Elon Musk, the visionary CEO of Tesla, has dropped a political bombshell that is sending shockwaves from Washington D.C. to Wall Street. Over the weekend, Musk announced the formation of a new U.S. political party, the “America Party,” declaring his intent to shatter the country’s “one-party system” and restore freedom.
The move immediately triggered a fiery response from his former ally, President Donald Trump, who blasted Musk as a “train wreck” who has gone “completely off the rails.” Trump dismissed the new party as a “ridiculous” idea that would only create political “confusion.”
This stunning public feud shatters a once-close alliance. Musk had previously been one of Trump’s most high-profile supporters, donating over $250 million to his campaign and even serving as a White House adviser. But the relationship soured after Musk fiercely criticized Trump’s “One Big Beautiful Bill Act,” a massive spending package Musk warned would “bankrupt” the nation by adding $3 trillion to the national debt.
The drama doesn’t stop with Trump. When Treasury Secretary Scott Bessent suggested Musk’s political maneuvering might create headaches for Tesla and SpaceX’s corporate boards, Musk shot back with a blistering retort, labeling Bessent a “Soros stooge.”
While Musk remains coy about his own political ambitions, he has hinted the America Party could target key congressional races in 2026 a move that could potentially siphon crucial votes from Republicans and reshape the political landscape.
For investors, this political firestorm adds a new layer of volatility to an already dynamic company. With Musk now juggling his roles as CEO, innovator, and political disruptor, both Wall Street and Washington are watching his every move with bated breath, especially as Tesla’s crucial Q2 earnings report looms later this month.
While the political drama unfolds, Wall Street is signaling caution. Analysts currently hold a consensus Hold rating on Tesla (TSLA) stock. Based on 35 recent ratings, the average price target of $293.09 suggests a potential downside of over 7%, indicating that investors may be wary of the risks that come with Musk’s high-stakes political power play.
