Elon Musk launching 'America Party'
What happened
The feud between President Donald Trump and Elon Musk escalated over the weekend after the tech billionaire announced he is forming a new political party. In a post on X on Saturday, Musk said his America Party would "crack the uniparty system."
The move was in response to the passage of the GOP's budget bill, signed into law by Trump on Friday, which would "bankrupt the country," Musk said.
Who said what
Trump Sunday told reporters that his former ally's decision to bankroll a new party was "ridiculous." Musk has gone "off the rails" and is a "TRAIN WRECK," the president said on Truth Social.
The Tesla boss undoubtedly has "deep pockets," Reuters said, but "breaking the Republican-Democratic duopoly will be a tall order." And his political ambitions are in "exactly the opposite direction that most Tesla investors want him to take during this crucial period" for the company, said Dan Ives, a tech analyst with Wedbush Securities, in a note to investors Sunday, per The Washington Post.
What next?
Musk's investors will be watching closely to see if Trump follows through on his threat to stop the flow of billions of dollars in government subsidies to the tycoon's companies. Tesla shares dropped more than 7% in premarket trading this morning.