Elon Musk has once again shaken the American public with his announcement of a new political party – the “America Party”. The move came as a direct response to a legislative proposal backed by President Donald Trump, which Musk deemed a “serious threat to the U.S. economy.”
But the bold political shift triggered immediate reaction from U.S. Treasury Secretary Scott Bessant, who told CNN that Musk should return to what he does best – leading his companies.
“I think the boards of his companies would much prefer that he focus on the businesses where he outperforms everyone else,” said Bessant, highlighting growing concerns in financial circles.
Bessant emphasized that while Musk’s “principles” are well known, polls suggest he lacks broad political support. “This announcement stirred anxiety in key economic sectors,” he added.
Markets responded cautiously: Tesla shares dipped by 0.85% in after-hours trading on the New York Stock Exchange, signaling investor unease over Musk’s shifting priorities.
Financial analyst Dan Ives from Wedbush said the announcement comes at a delicate moment for Tesla. “Investor fatigue is growing. Musk’s political ambitions are seen as a distraction during a time of intense competition and innovation in the tech world,” Ives noted.
He also mentioned that Musk’s earlier distancing from meme-crypto projects like Dogecoin was seen as a return to core business focus – a sentiment now undermined by the creation of a full-fledged political party.
The rift between Musk and former ally Donald Trump has become increasingly public, and with the founding of the America Party, many speculate Musk may be eyeing a presidential run in 2028 or a disruptive role in the current political climate.
Musk’s entry into politics is not just a headline – it’s a potential paradigm shift. For Wall Street, it raises red flags about the stability of leadership at Tesla and SpaceX. For Washington, it signals the rise of a new, unpredictable political force. Whether Musk’s political adventure takes off depends not just on his vision – but on whether Americans are ready for a tech mogul to step into the political arena.
Source: CNN