Musk Launches America Party, Tesla Shares Fall

Elon Musk has officially launched the 'America Party,' aiming to challenge both Democratic and Republican control after a public feud with Donald Trump over a tax and spending bill that eliminated the $7,500 federal EV tax credit. Musk announced the party on X, sparking a more than 7% drop in Tesla shares as investors grew concerned about his political focus and its impact on Tesla’s recovery. Trump responded by dismissing the new party and warning of possible repercussions for Musk’s companies, including potential loss of federal contracts. The rift centers on Musk’s opposition to the spending bill and his commitment to unseat lawmakers who supported it. Tesla CFO Vaibhav Taneja has taken on the role of Treasurer for the America Party, indicating Musk’s reliance on his close team. The developments have created uncertainty in the EV market, with dealers and investors worried about the loss of federal incentives and Musk's political ambitions.