Winning Bizness Desk
Mumbai. Elon Musk, CEO of Tesla and SpaceX, announced on July 5, 2025, that he has formed a new political party in the U.S., dubbed the “America Party.” He posted on his platform X that this party is intended to restore individual freedom and provide an alternative to the entrenched two-party system.
Public Poll Shows Strong Support
In a poll held on July 4, approximately 65–66 percent of respondents voted in favor of forming a new party, indicating public appetite for change. Musk emphasized that both Democrats and Republicans had failed the country.
Break with Trump over Fiscal Bill
Musk’s announcement came after his falling out with former President Trump over a recently passed “Big, Beautiful Bill”—a tax‑and‑spending package Musk criticized as risking national financial stability.
Trump Threatens Subsidy Cuts
Following the split, Trump threatened to withdraw substantial federal subsidies and contracts from Tesla and SpaceX, signaling retaliation for Musk’s criticism of the bill.
Azoria Postpones Tesla ETF Launch
In response to Musk’s political venture, U.S. investment firm Azoria Partners delayed the launch of its “Azoria Tesla Convexity ETF,” citing concerns that Musk’s divided focus could affect his performance as Tesla CEO.
Treasury Secretary Raises Alarm
U.S. Treasury Secretary Scott Bessent publicly urged Musk to stay focused on his business roles at Tesla and SpaceX. He suggested that corporate board members would likely prefer Musk avoid entangling politics with his executive responsibilities.
Market Reacts with Volatility
Analysts warn that Musk’s political ambitions could unsettle Tesla’s stock, which has already seen volatility due to recent policy changes and waning EV tax credits. Concerns are mounting over whether Musk's political focus might slow Tesla’s progress on key innovations.
In Summary: 7 Key Point
- Elon Musk launches the “America Party” on July 5 to challenge the two-party US system.
- His July 4 poll showed around 65 % support for a new political party.
- Musk broke with Trump over the “Big, Beautiful Bill,” citing fiscal concerns.
- Trump retaliated by threatening to pull subsidies for Tesla and SpaceX.
- Azoria Partners delayed a Tesla-themed ETF over concerns about Musk’s focus.
- Treasury Secretary Bessent advised Musk to concentrate on Tesla and SpaceX.
- Analysts caution Tesla’s stock could face further pressure from the political distraction.
