Elon Musk’s Tesla experienced a decline in pre-market trading after an investor remarked that the ‘First Buddy’s’ initiation of a new political party contradicts what shareholders desire.

The former leader of the Department of Government Efficiency (DOGE) revealed on Saturday his plans to establish the America Party. This decision stems from his dissatisfaction with Donald Trump’s ‘One Big, Beautiful Bill.’

Musk argues that this spending plan could lead the country to financial ruin, and he aims to bring together ‘the 80 percent’ of centrist Americans to oppose the two dominant political parties. 

Investors appeared to recoil at this news, as Tesla dropped 2.6 percent in pre-market trading ahead of opening after the holiday weekend. 

It continues a 22 percent drop in stock for the electric vehicle maker in 2025 alone amid Musk’s political rise.

Dan Ives, an analyst for Tesla and considered one of its most optimistic investors, said that Musk is getting away from what he needs to be doing at his day job.

‘Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that most Tesla investors want him to take during this crucial period for Tesla,’ he wrote on Musk-owned X. 

‘We get why Musk doing this…just causing exhaustion from many investors.’ 

Business Insider reported that Ives published a note pointing out that Musk could be creating a powerful enemy for Tesla in Donald Trump.

‘Musk/Tesla do not need to keep poking the bear as Trump can create more hurdles for Musk/Tesla/SpaceX over the coming years,’ he wrote. 

Ives said that investors were pleased with Musk departing the Trump administration – initially on good terms – and returning to Tesla.  

‘That relief lasted a very short time and now has a taken a turn for the worst with this latest announcement,’ Ives wrote. 

DailyMail.com has reached out to Tesla for comment. 

On Sunday, Trump took his first chance to sound off on his former ally attempting to launch a competing party. 

Trump said Musk’s America Party would ‘never work’ as the world’s richest man carried out his threat to challenge the two-party system. 

‘Have fun,’ Trump said in response. 

And, in a lengthy post on his Truth Social account, Trump accused Musk of going ‘completely off the rails.’ 

‘I am saddened to watch Elon Musk go completely “off the rails,” essentially becoming a TRAIN WRECK over the past five weeks. He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States.’ 

‘I think it’s ridiculous to start a third party,’ Trump – who ran for president on the Reform Party ticket in 2000 – told reporters in New Jersey on his way back to the White House after a weekend at his Bedminster golf club.

‘We have a tremendous success with the Republican Party. The Democrats have lost their way, but it’s always been a two party system, and I think starting a third party just adds to confusion. It really seems to have been developed for two parties. Third parties have never worked, so he can have fun with it, but I think it’s ridiculous.’ 

Musk quickly, indirectly, responded on social media, asking: ‘What the heck was the point of @DOGE if he’s just going to increase the debt by $5 trillion??’

He then quoted Dune, writing of Trump: ‘Fear is the mind-killer. Fear is the little death that brings total. Obliteration.’

Musk vowed vengeance after Congress passed Trump’s signature legislation to fund the government. 

The Tesla founder was angry it contained no federal subsidies for electronic vehicles. And Musk was furious the legislation added to the country’s debt. During his time at the Department of Government Efficiency, Musk worked to cut the size and scope of the federal government.

But Trump said Musk knew all along he wouldn’t get a subsidies. 

‘When Elon gave me his total and unquestioned Endorsement, I asked him whether or not he knew that I was going to terminate the EV Mandate – It was in every speech I made, and in every conversation I had. He said he had no problems with that – I was very surprised!,’ he wrote in his Truth post.

As lawmakers debated Trump’s legislation, Musk – the bill’s biggest critic – threatened them repeatedly with primaries and then vowed to start his own political movement.

It passed last week and Trump signed it into law on the Fourth of July. 

And, this weekend, Musk carried out his threat.

‘When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,’ he wrote Saturday on X. 

‘Today, the America Party is formed to give you back your freedom.’

Musk spent almost $300 million supporting Trump and Republicans in the 2024 election. 

He and Trump started out close with the president even inviting Musk to stay in the Lincoln Bedroom at the White House. 

But duo got into a social media war during debate on the ‘big, beautiful bill,’ leading to Musk threatening to use his billions to start a third political party and Trump threatening to deport the naturalized American citizen.

Musk could impact the 2026 midterm elections that determine control of Congress if he is willing to spend significant amounts of money. 

However, starting a third party has its difficulties. Every state has different requirements to put a candidate on the ballot and the heavily-gerrymandered congressional districts could prove hard for a third-party candidate to penetrate.  

Republicans currently hold slim majorities in both the House and Senate with just a handful of seats giving them the edge over Democrats.

Out of 100 seats in the U.S. Senate, 53 are held by Republicans. In the U.S. House of Representatives, 220 seats are held by Republicans and 212 are held by Democrats with three seats presently vacant due to members passing away.

The margins could easily shift with a few well-placed victories. 

The world’s richest man spent Sunday morning on X taking feedback from users about the party. He indicated he was going to use it in next year’s contests.

He also vented his anger at Republicans. 

‘The Republican Party has a clean sweep of the executive, legislative and judicial branches and STILL had the nerve to massively increase the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS,’ he wrote on X. 

And he vowed to crack America’s politics.

‘The way we’re going to crack the uniparty system is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield,’ Musk wrote.