Tesla Shares Drop After Musk Launches America Party

Elon Musk has launched the 'America Party,' seeking to disrupt the Republican and Democratic hold on U.S. politics following a high-profile split with President Donald Trump. The announcement has prompted significant backlash from Tesla investors, with the company's shares dropping nearly 7% and analysts voicing concerns about Musk's divided focus and potential loss of government subsidies. Trump has publicly ridiculed Musk’s efforts, criticizing both his third-party ambitions and his responses to fiscal policy and EV mandate changes. The feud has intensified on social media, with Musk mocking Trump’s Truth Social platform and questioning his past government performance. Musk’s recent skepticism regarding the DOJ’s Epstein findings has further fueled debate about his political approach. The timing of the America Party's launch coincides with operational and financial pressures at Tesla, heightening worries about the company’s future.