Fear is mind-killer: Musk jabs Trump after he taunts him over his America Party
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Time of India
22 minutes ago
- Time of India
'Elon Musk should stay out of politics...': US Treasury chief warns after 'America Party' announcement
'Elon Musk should stay out of politics...': US Treasury chief warns after 'America Party' announcement In a dramatic escalation of tensions between two of the most prominent figures in American business and politics, Elon Musk has officially announced the formation of a new political organisation called the 'America Party.' The announcement came on Saturday, July 5, 2025, following weeks of growing disagreement between President Donald Trump and the administration over the recently passed tax-and-spending bill. The new legislation, which includes sweeping tax cuts and expanded defence spending, has drawn criticism from Musk and others who warn that it could significantly inflate the US budget deficit. Musk, once a vocal supporter of Trump and a key player in federal advisory roles, now appears poised to take on members of the Republican establishment during the upcoming midterm elections. According to a report by Reuters, Musk shared the news of the party's formation through his social media platform X, citing the results of a public poll showing strong support for an alternative to the traditional two-party system. The implications of Musk's political move are already reverberating across Wall Street, Washington, and Silicon Valley. Elon Musk rejects Donald Trump's tax bill, launches 'America Party' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Elon Musk's political shift marks a stark change from his earlier alignment with President Trump. During Trump's previous term, Musk served in a high-profile advisory position as head of the Department of Government Efficiency (DOGE). He also provided financial support to Trump's 2024 re-election campaign. However, their relationship began to unravel over the content of Trump's latest tax bill. According to The Daily Beast, Musk strongly opposed the bill's elimination of green energy credits that had benefited Tesla's electric vehicle business. Trump, in turn, has accused Musk of acting out of self-interest and has threatened to revoke billions in federal contracts from both Tesla and SpaceX. Trump's reaction and the White House response President Trump responded publicly to Musk's announcement during a press interaction on July 6. Calling the move 'ridiculous,' Trump dismissed the formation of a third party as a distraction and warned that it could disrupt the nation's political balance. The White House has not issued an official statement, but Trump's Council of Economic Advisers Chair Stephen Miran defended the administration's policy on ABC's 'This Week,' claiming that the tax bill would 'turbocharge' economic growth. Miran also downplayed Musk's political influence, saying, 'The principles of DOGE were very popular, but if you looked at the polling, Elon was not.' Meanwhile, US Treasury Secretary Scott Bessent publicly urged Musk to prioritise his responsibilities as CEO of Tesla and SpaceX. In a CNN interview, Bessent remarked, 'I imagine that those boards of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities.' Impact on business and financial markets The fallout from Musk's announcement was immediate. According to a Reuters report published on July 6, investment firm Azoria Partners delayed the launch of its Tesla-linked Convexity ETF due to uncertainties over Musk's political ambitions. Azoria CEO James Fishback publicly urged Tesla's board to review whether Musk's political commitments were compatible with his corporate duties. Tesla's stock price dropped nearly 7% following the news, extending a broader decline of about 35% since late 2024. Analysts cited rising political risk and leadership distraction as key concerns for investors. Fishback, writing on X, stated: 'I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO.' He later added, 'Elon left us with no other choice.' Structure and goals of Elon Musk's 'America Party' Musk's newly formed America Party is designed to operate outside of traditional Republican and Democratic platforms. According to an overview shared on Musk's X profile and summarized in The New York Post, the party will focus on several core issues: Reducing the federal deficit Expanding AI-enabled national defence systems Promoting deregulation in the science and technology sectors Offering tax incentives for families and manufacturing Funding primary challengers to Republican incumbents who voted for the tax bill Rather than fielding a presidential candidate, Musk stated that the party's immediate focus is to win 'a couple of key congressional seats' in the 2026 midterms and reshape the legislative priorities of the Republican majority. Elon Musk's justification for the break Musk has framed his departure from the GOP as a necessary response to what he views as irresponsible fiscal policy. In a series of posts on X, he described Trump's bill as 'insanely expensive' and claimed that it would 'destroy the American balance sheet.' He emphasised that the America Party is intended to restore what he calls 'pragmatic conservatism,' centred on technological advancement and fiscal restraint. According to Reuters, Musk is also considering launching PACs to support like-minded candidates, although no official filings have been made yet with the Federal Election Commission. Also read | 'I couldn't support Elon Musk any longer…': Tesla employee resigns after 7 years citing moral conflict with Musk AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
an hour ago
- Business Standard
Wall Street falls as fears over Trump's new tariffs weigh on markets
US stocks are losing ground in afternoon trading Monday as the Trump administration steps up pressure on trading partners to make deals before punishing tariffs imposed by the US take effect AP New York Stocks fell on Wall Street as the Trump administration stepped up pressure on trading partners to make deals before punishing tariffs imposed by the US take effect. The S&P 500 lost 0.8 per cent Monday. The Dow Jones Industrial Average gave back 0.9 per cent, and the Nasdaq composite fell 0.9 per cent. Tesla tumbled as the feud between CEO Elon Musk and President Donald Trump reignited over the weekend. Musk, once a top donor and ally of Trump, said he would form a third political party in protest over the Republican spending bill that passed last week. US stocks are losing ground in afternoon trading Monday as the Trump administration steps up pressure on trading partners to make deals before punishing tariffs imposed by the US take effect. The S&P 500 was down 1.2 per cent in the first day of trading in the US after a holiday-shortened week. The benchmark index remains near its all-time high set last week. The Dow Jones Industrial Average was down 641 points, or 1.4 per cent, as of 2.32 pm. Eastern time, and the Nasdaq composite was 1.3 per cent lower. Decliners outnumbered gainers by more than 5-to-1 on the New York Stock Exchange. Tesla tumbled 7.4 per cent for the biggest drop among S&P 500 stocks as the feud between CEO Elon Musk and President Donald Trump reignited over the weekend. Musk, once a top donor and ally of Trump, said he would form a third political party in protest over the Republican spending bill that passed last week. The selling accelerated after the Trump administration released letters informing Japan and South Korea that their goods will be taxed at 25 per cent starting on August 1, citing persistent trade imbalances with the two crucial US allies in Asia. If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge, Trump wrote in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung. Trump told reporters over the weekend that his administration would send letters to several foreign governments as early as Monday spelling out their tariff rates if they don't reach a deal before Wednesday the culmination of a 90-day negotiating period set by the White House during which goods from most countries have been taxed at a baseline 10 per cent. He also said on Sunday that he would impose an additional 10 per cent in tariffs against the Brics bloc of developing nations, which had condemned tariffs increases at its summit in Brazil. In addition to Brazil, the Brics countries also include Russia, India, China and South Africa. With the 90-day pause in US tariffs against a long list of nations set to expire, the threat of more severe tariffs hangs over the global economy once again. Just bringing back that meaty topic back into focus, after a strong week last week, has given a little bit of a pause in the market, said Bill Northey, senior investment director at US Bank Asset Management. The near-term outlook will likely hinge on several key factors like the extent to which trading partners are included in Trump letters, the rate of tariffs, and the effective date of such tariffs, according to analysts at Nomura. Last week, the Trump administration announced that it reached a deal with Vietnam that would allow US goods to enter the country duty-free, while Vietnamese exports to the US would face a 20 per cent levy. That was a decline from the 46 per cent tax on Vietnamese imports he proposed in April. The type of deal struck with Vietnam may be a blueprint for similar countries in the region with economies heavily reliant on large trade deficits with the US, said Jason Pride, chief of investment strategy and research at Glenmede. All of the sectors in the S&P 500 index were in the red, with technology, financial and consumer-related stocks among the biggest weights on the market. Apple fell 2.2 per cent, JPMorgan Chase dropped 2 per cent and Home Depot slid 1.7 per cent. Molina Healthcare fell 3.5 per cent after the insurer lowered its profit guidance due to rapidly accelerating costs. UnitedHealth Group also recently reported a spike in costs that forced it to cut its forecast, sending its stock tumbling in April. In deal news, software company CoreWeave agreed to acquire cryptocurrency mining company Core Scientific in an all-stock transaction valued at about $9 billion. Shares in Core Scientific sank 18.1 per cent, while CoreWeave fell 4.8 per cent. Bond yields mostly rose. The yield on the 10-year Treasury rose to 4.39 per cent from 4.34 per cent late Thursday. The downbeat start to the week follows a strong run for stocks, which pushed further into record heights last week after a better-than-expected US jobs report. Stock indexes in Europe were mostly higher. Asian markets closed mostly lower. Oil prices fluctuated after Opec+ agreed on Saturday to raise production in August by 548,000 barrels per day. US benchmark crude was up 0.6 per cent, while Brent crude, the international standard, was up 1.2 per cent. This week will be relatively light on economic data. On Wednesday the Federal Reserve will release minutes from its policymaking committee's meeting last month. The Fed's chair, Jerome Powell, has been insisting that the central bank wants to wait and see how Trump's tariffs affect the economy and inflation before making its next move on interest rates. While lower rates give a boost to the economy by making it easier to borrow money, they can also give inflation more fuel. That could be dangerous if the Trump' administration's tariffs send inflation higher. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Indian Express
an hour ago
- Indian Express
Elon Musk's break up routine: A brand new political party
After the breakup comes the glow-up. Two people have a falling-out, harsh words are exchanged, and at least one of the parties sets out to show that they can do better. In the case of two rich and powerful men duking it out in public, following one of the most predictable separations in recent history — the White House can simultaneously accommodate only so many egos above a certain size, after all — the stakes are that much bigger. The others can keep their post-breakup revenge dresses and bright red sports cars: Bolstered by the response to a Fourth of July poll on his social media platform X, Elon Musk has minted himself a whole new political party as a challenge to former BFF Donald Trump and his Republican Party. Musk has a history of using polls on X to make major decisions, whether it was buying Twitter or reinstating Trump's account on the platform. Politics, however, requires more than just an online constituency of bots and fans. But there is another reason Musk's chosen form of payback is surprising. Just before relinquishing his position as head of the Department of Government Efficiency, the billionaire had been candid in his appraisal of politics in Washington, DC, describing it as a 'pain' in interviews. That his companies, especially Tesla, apparently paid the price for his political preoccupations didn't help either. Already, the announcement of Musk's new America Party has seen Tesla stocks tumble, threatening to wipe nearly $70 billion off the firm's value. As he resumes his hostile exchanges with the US President — who has dismissed the formation of the new party as 'ridiculous' — Musk's decision seems less a well-considered attempt to disrupt politics as usual, and more the kind of angry riposte more frequently seen on a school playground.
