Elon Musk declares creation of “American Party”. This hits “Tesla”

Elon Musk declared the creation of a new “American Party” on July 5. This came amid a split with the US President Donald Trump over a “big, beautiful bill” on taxes and spending that Congress passed on July 4.

Reuters writes about this.

On July 4th, US Independence Day, Musk launched a poll on his X page asking whether a new political party should be created and “independence from the two-party system” should be achieved. About 65% of users voted in favor. The very next day, Musk wrote:

The first signs of investor discontent with Musk’s statement emerged later that day. Investment firm Azoria Partners will delay the listing of Tesla’s exchange-traded fund, Azoria CEO James Fishback said. Fishback is asking Tesla’s board to investigate Musk’s political ambitions. He said the party statements undermine shareholder confidence in Musk’s past statements that he would focus more on business after leaving government service in May.

The feud with Trump has led to several sharp declines in Teslaʼs share price. The stock soared after Trumpʼs re-election in November 2024 and peaked at over $488 in December, before losing more than half its value in April 2025 and closing at $315.35 in late June.

• Musk spent hundreds of millions to re-elect Trump and headed the Department of Government Efficiency (DOGE), which was tasked with cutting government spending. But after Trump began pushing his “big, beautiful” bill, the two publicly clashed.
• When asked on X what exactly made him go from loving Trump to attacking him, Musk replied: “Increasing the deficit from an already insane $2 trillion under Biden to $2.5 trillion. That will bankrupt the country”. Trump threatened to cut off billions of dollars in subsidies that Musk’s companies receive from the federal government.

For more news and in-depth stories from Ukraine, please follow us on X.