For years, Elon Musk has been inseparable from Tesla — both its greatest asset and its biggest liability. But after a chaotic first half of 2025 marked by political brawls, public backlash, and direct attacks on Tesla’s brand, the billionaire is signalling a shift.
In the clearest sign yet that the Trump–Musk alliance is over, Musk launched what he calls the “America Party” — not necessarily to run for office, but to regain control of the narrative.
The stakes? Not just political reputation, but Tesla’s entire valuation.
Politics Hit Tesla Where It Hurts: The Brand
After pushing for the controversial Department of Government Efficiency (DOGE) and publicly accusing media and political elites of “top-down engineering,” Musk stirred up a hornet’s nest. Protests, vandalism, and political targeting followed — and for the first time, Tesla’s brand loyalty began to erode.
Even as the FBI formed a task force to protect Tesla owners, the dismissal of vandalism charges in Minneapolis highlighted what Musk loyalists see as politicized bias. The signal was clear: Musk’s politics were bleeding into Tesla’s public image — and share price.
By publicly distancing himself from Trump, Musk seems to be trying to limit further damage, especially as Tesla heads into its most critical product cycle yet.
What Is the “America Party”?
On paper, the America Party is Musk’s new rallying cry for “freedom,” launched on June 5. But analysts believe it’s less about forming a third party — which is nearly impossible under current US electoral structures — and more about controlling the media narrative, the way “Restore Britain” functions in the UK.
“This gives Musk political leverage without Trump baggage,”
said one strategist. “And it gives Tesla a shot at recovering its brand image — if Elon keeps it under control.”
But the Wedbush warning is real: Analyst Dan Ives called this a “tipping point” and said Tesla’s board must step in and set firm boundaries between Musk’s politics and Tesla’s business.
Can Robotaxis Save the Story?
Beyond the headlines and hashtags, Tesla’s long-term survival rests not on politics, but on Full Self-Driving (FSD).
- After years of delays, the robotaxi test rollout in Austin has finally begun.
- There are already videos of accidents, and the NHTSA is investigating.
- But FSD’s promise is still intact: machine learning may reduce error rates over time, winning back public trust.
If the FSD tech proves reliable, Tesla could unlock a new revenue stream and restore its dominance. And the social cachet of owning a car that drives itself may do more for sales than any political stunt ever could.
“The entire valuation rests on robotaxis now,”
said one analyst. “If that fails, no party — Trump, Musk, or America — can fix it.”
Tesla’s Current Market Standing
- TSLA down 3% this week, currently trading at $294,
- 22% down YTD, still under the WSJ analyst average target of $313.50
- Analyst sentiment is split: 20 Buy / 20 Hold / 11 Sell
Tesla remains a speculative play, where every political tweet from Musk or FSD glitch can swing the stock. The company’s future hinges on tech performance, not campaign slogans.
Final Take: Musk May Be Moving On, But Investors Haven’t Forgotten
The “America Party” may be Musk’s way of saying he’s done with Trump, but Tesla shareholders want to know if he’s done playing politics altogether.
Until robotaxis scale and FSD proves safe, Tesla’s price will reflect a fragile dance between brand risk, tech execution, and Musk’s personal ambitions.
And right now? That dance is getting harder to watch.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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Elon Musk Launches ‘America Party’ After Breaking With Trump
