Elon Musk said he’s carrying out his threat to form a new political party after his fissure with President Donald Trump, announcing on social media that he would form the America Party in response to the president’s sweeping tax cuts law.

The expiry of federal tax credits will weigh on the pockets of Tesla consumers as several of the company’s best-selling models are currently eligible for it.

Elon Musk has officially launched a new political movement, the "America Party," following the repeal of the $7,500 federal EV tax credit.

Musk has conducted polls on whether he should sell his Tesla stock or to reinstate President Donald Trump to the platform.

Elon Musk realized too late how badly Tesla would be hurt by Trump’s Big Beautiful Bill, according to former and current Tesla executives who now give more details about the impact on the company.

But Tesla's troubles, though levered to Musk, may be deeper than Musk's distractions, such as politics, gaming, and colonizing Mars. A record fourth quarter delivery report in January seemed to indicate all was well with Tesla, but it doesn't tell the full story.

In response, Trump told NBC News that he had no intentions of speaking to Elon and said he would "pay very serious consequences" if he funded Democrats in future elections. Things simmered down when the two backtracked a bit. Trump told reporters he was planning on keeping the red Tesla.