Elon Musk pivots away from GOP to start new party

Last week, it became clear that Musk had no intention of making up with Trump.

Musk even started a poll to see if people would support a new party.

After the poll was over, Musk announced he was starting the America Party, and he already has his 2026 strategy in place.

New party

Musk’s poll went viral, and the American people spoke.

He posted, "By a factor of 2 to 1, you want a new political party and you shall have it!

"When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom."

Trump said the new party would create "total disruption and chaos,” and he is not wrong.

Danger, danger

The GOP knows this is a problem on several fronts, especially in the first mid-term after winning the White House, which is traditionally a bloodbath for the incoming party.

One Republican strategist stated, “One of the most destructive behaviors that we’ve had in cycles where we’ve been unsuccessful in Senate races … are those in which we have expended massive resources in intraparty warfare.”

It was bad when Musk said he was going to primary Republicans, but saying he is going to start another party is an even bigger problem.

That means that nearly $300 million that Musk spent in the 2024 race is gone. He said he was already going to tamper down the spending, but to go from $300 million to nothing is crippling for Republicans.

Bailing

Musk is paying a price for his rebel behavior, with Tesla shares plummeting by 7% after his announcement, as I am sure MAGA started cashing out, not to mention the investors who are just scared of politics in general.

Dan Ives, global head of technology research at Wedbush Securities, explained, “Very simply Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story.

“While the core Musk supporters will back Musk at every turn no matter what, there is broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track.”

The stock hiccup is just that, a hiccup, as there will be more than enough investors to take advantage of the lower price. The big issue here is Musk completely breaking with the GOP, which is just a devastating blow when you consider the direct impact he had not only in Trump being elected, but in the GOP holding power in the House. Don’t dismiss this, my friends, especially if Musk gets some true moderate conservatives to run under his party in battleground states. It could be what moderates on both sides of the aisle are looking for.