Musk Forms ‘America Party' after EV Tax Credit Slashed – Tesla (TSLA) Risks Grow as Trump Bill Passes
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The move follows Musk's public exit from the Department of Government Efficiency, a short-lived role he held after backing Trump in the 2024 election. The catalyst was a bill that eliminates the $7,500 EV tax credit earlier than expected and lifts the federal debt ceiling by $5 trillion. Musk argues the bill hurts future-focused industries and hands cash to 'sectors of the past.'
Say Hello to the New America Party
Musk ran a poll on X, where 65% of over 1.2 million voters supported the idea of a new party. He followed up with: 'You want a new political party and you shall have it!' To date, there have been no official filings with the Federal Election Commission.
The America Party isn't aiming for the White House yet. Instead, Musk plans to target a handful of House and Senate races in 2026. With Congress so evenly split, flipping even a few seats could give his new party outsized influence.
Trump has fired back, threatening to review federal contracts with Musk's companies, including Tesla and SpaceX. He even joked about deporting Musk, who became a U.S. citizen in 2002. Legal experts say that's not happening. Then again, maybe Trump will launch a rival to SpaceX and start building 'the biggest, most beautiful spaceships you've ever seen.'
Is There Room for a Third Party?
So, what are the odds this party actually matters? Historically, third parties struggle. The American political system has traditionally favored two major parties. But Musk has billions of dollars, a built-in media platform, and no shortage of name recognition. If anyone can break through, it might be the guy who tweets markets into motion and sells flamethrowers for fun.
Still, it's a long road from social media poll to political power. Investors will want to watch how this plays out, especially with EV policy and federal contracts now tangled in politics. The America Party may never dominate the ballot, but it could swing enough seats to make a difference.
Is Tesla a Buy, Sell, or Hold?
Back to Musk's actual business, Tesla boasts a Hold rating on the Street, based on 35 ratings. The average price target for TSLA stock is $293.09, implying a 7.06% downside potential.
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