POLITICS NEWS – Musk unveils new political party, prompting Trump backlash and Tesla stock drop

Ananya Roy, News Writer

Elon Musk’s announcement of the “America Party” has deepened his rift with President Trump and triggered fresh investor anxiety. Tesla shares fell nearly 7%. Musk launched the party in protest to Trump’s sweeping tax and spending bill, vowing to challenge Republican incumbents who supported it.

Trump dismissed the move as “ridiculous” and warned of potential conflicts tied to Musk’s business interests. The fallout has also prompted investment firm Azoria Partners to delay the launch of a Tesla ETF, citing concerns over Musk’s political entanglements and leadership focus. Tesla stock is now down 35% since December.