Trump slams Musk's bid to start new political party
'Third parties have never worked, so he can have fun with it, but I think it's ridiculous,' Trump told reporters on Sunday. The US has 'always been a two-party system,' he added.
Musk said on Saturday that a new 'America Party' he has been threatening to launch 'is formed,' a day after Trump signed a tax-cut and spending bill into law that Musk had denounced. He didn't provide details of the political party and there's no immediate indication that he has filed official paperwork.
The latest move by Musk signals a longer-term commitment to politics, a development set to further unnerve Tesla investors who have wanted the company's chief executive officer to focus more on increasing profits for shareholders. The company's stock, which has lost more than 20 percent this year, was set to take a further hit when trading resumed on Monday.
Shares of Tesla were nearly 5 percent lower in alternative trading system Blue Ocean in the Asia morning on Monday, according to Kok Hoong Wong, head of institutional equities sales trading at Maybank Securities.
Musk's 'major beef' with Trump shows no signs of slowing and his latest move will likely push the president to further isolate the Tesla co-founder from the Oval Office, according to Wedbush analyst Daniel Ives, who noted that there's some exhaustion related to the focus on politics for the company's leader. He expects Tesla shares to come under pressure as investors fret over the impact of Musk's move.
'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,' Ives wrote in a note dated July 6. The 'political gamble' may draw Tesla's board of directors to get involved depending on how far Musk takes it, he added.
The company's core auto business is facing headwinds around the world, with Musk's political actions increasingly casting a shadow over the brand. Global sales tumbled 13 percent in the second quarter, putting Tesla on course for a second consecutive annual decline.
In China, it's facing aggressive competition from the likes of BYD Co. and Xiaomi Corp., which offer newer, more affordable, feature-laden EVs. Shipments from Tesla's Shanghai factory recently rose for the first time in eight months, but at an incremental 0.8 percent pace.
Tesla's taken an even bigger hit in Europe, which has emerged as its weakest market. In May, the company's overall sales in the region slid for a fifth consecutive month, down almost 30 percent, as the broader EV market there expanded.
'Off the Rails'
Musk in May exited the administration in a dramatic blowup with Trump that ended his role heading the Department of Government Efficiency drive to cut federal spending. After initially appearing to back off his feud with Trump, Musk last week renewed criticism of the president's 'insane' spending bill. He said it gave 'handouts to industries of the past while severely damaging industries of the future,' and would raise the federal debt ceiling by $5 trillion.
Musk made the announcement of a new 'America Party' on his X social network after posting the results of a poll on the platform that he said showed 65 percent of respondents in favor of doing so. He said one way to break the two-party system would be to focus on winning a small number of Senate and House seats in order to serve as the deciding vote on contentious laws.
Later on Sunday, Trump amplified his comments in reaction to the new party in a post on his Truth Social network, saying he was 'saddened to watch Elon Musk go completely 'off the rails'' over the past five weeks.
Trump also touted his budget package that 'unfortunately for Elon' eliminates the electric vehicle subsidy.
Treasury Secretary Scott Bessent suggested Sunday that Musk should stick to business rather than politics.
'I believe that the boards of directors at his various companies wanted him to come back and run those companies, which he is better at than anyone,' Bessent said in reply to a question on CNN's State of the Union.
'So I imagine that those board of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities,' Bessent said.
Third Parties
While independent candidates periodically win seats in the Senate and House of Representatives, third parties have traditionally struggled to gain traction in the US's winner-take-all political system. Ross Perot's presidential bid for the Reform Party in 1996 marked a high-water point for third-party candidates in presidential elections, when he captured about 8 percent of the popular vote but failed to win any states.
Not all investors opposed Musk's move to create a party. Jason Hsu, CIO at Rayliant Global Advisors Ltd., called it a 'genius move' that could potentially boost Musk's political power and ultimately help protect his companies.
'We will see some initial volatility,' Hsu added. 'Some investors would be concerned with Elon's distraction and perhaps many don't yet see this move as the best move to protect Tesla from the wrath of the current Trump administration.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
Netanyahu hosted by the guarantor-in-chief
When visiting the president's office, it helps to come bearing warmth. A firm embrace, a grateful smile, a public thank you — all gestures of loyalty that set the tone. It is best to arrive eager for wisdom and ready to express not only personal admiration but also that of your people. In these corridors of power, both elders and juniors are expected to display reverence. Some go further. They declare themselves lucky to have been born during his era, lucky to sail on the same ship. For he, they say, is a seasoned captain, unfazed by tempests. Success clings to him and landmark deals bear his signature. He is, in their eyes, unlike any predecessor — a singular force, a steadfast ally in turbulent times. Flattery often extends to his choice of necktie or dance steps — and, of course, his tweets. Such an encounter may begin with congratulations: victories abroad echo those at home. As Israeli Prime Minister Benjamin Netanyahu flew toward his US meeting this week, he was both relaxed and cautious. He credits himself with having slipped inside Donald Trump's mind — perhaps even his heart. But Trump is a complex man: hard-edged, addicted to winning, a master of deals and disruption. He recoils at failure, bristles at disappointment and never backs down. He plays both sides — extending a hand one moment, throwing punches the next. He views the world through his own lens, dismissing the vision of experts. His talent for veering off course is matched only by his flair for unsettling both allies and foes. Each new battle deepens his conviction that destiny has chosen him to save not only America, but the world. Trump extends a hand one moment, throws punches the next. He views the world through his own lens. Ghassan Charbel Netanyahu might open the meeting with a tale. He could say the president's backing allowed him to carry out major surgery on the Middle East — painful, delicate, expensive surgery that has redrawn the region's face. Just two years ago, he might say, a missile could travel from Tehran to Beirut via Iraq and Syria, bypassing state permission. An Islamic Revolutionary Guard Corps adviser could accompany it, arming proxies and cementing their place in the so-called axis of resistance. Back then, a visitor to Syria could meet President Bashar Assad in Damascus, then travel by road to Beirut's southern suburbs to sit with Hezbollah chief Hassan Nasrallah. They could even meet leaders of Hamas and Islamic Jihad living in Lebanon without state consent. American support secured Israel's military and technological edge and facilitated the operation. Today, the missile no longer reaches its target. Nor does the adviser. Syria, once the corridor and incubator, speaks a different language now — reportedly seeking only to revive the disengagement accord in exchange for stepping out of the military side of the conflict with Israel. Lebanon, once the base of the 'support front,' has paid a steep price. Though Israel paused its shelling, it continues lethal strikes. Without Syrian depth, Hezbollah cannot launch a war. Yet its insistence on holding onto its weapons robs Lebanon of stability and reconstruction prospects and could trigger something worse. The old balance is broken. Israeli jets control the skies over much of the neighborhood and operate across borders. Syria wants US guarantees. So does Hamas. Lebanon, too. Even Iran is said to be seeking American assurances. Trump, it seems, is the region's guarantor-in-chief. Netanyahu closes his eyes. He feels genuine gratitude toward the president. The picture has changed. The fall of Assad's regime, in his eyes, shifted the game. The current phase is about forcing factions back into their native maps, stripped of regional extensions. That return coincides with extracting borders from the battlefield, at least for now. Removing the rubble from Gaza will take years. So will reconstruction. In the meantime, Hamas will likely be sidelined, unable to contemplate another war. Lebanon, too, may not pose a threat in the coming years. At best, it hopes for implementation of UN Security Council Resolution 1701, Israeli withdrawal from its territory and for weapons to be placed solely in the state's hands. The biggest file remains Iran. Trump's vow to prevent it from obtaining a nuclear weapon is unwavering. The latest round of conflict drew Tehran directly into the war, stripping it of the luxury of fighting by proxy. Israeli strikes on Iranian soil pierced what Tehran once considered untouchable. Even as Iran's missiles struck Tel Aviv, the strategic loss across its regional network was deeper. Now the question: Will Iran opt to ride out Trump's term, coexisting until the clock runs out? Can it rebuild new lines of regional defense resembling Hezbollah's former role? Netanyahu knows Trump needs a win in Gaza after failing to deliver one in Ukraine. Russian President Vladimir Putin wants to crush Ukraine before agreeing to a truce and he wants no partner in claiming victory. But Netanyahu will not challenge the guarantor-in-chief. The man of war can also be the man of peace. A ceasefire in Gaza might be accepted — then navigated around. Some flexibility may be necessary, given the devastation. There is little left in Gaza that could pose a danger. Israel's adversaries now wait for guarantees from the US. Netanyahu, meanwhile, hopes for a fresh endorsement from the White House to fuel his reelection bid. Some in the region are even hoping Trump concludes that the most meaningful guarantee he can offer is to keep the two-state solution alive — even if on pause. For now, the guarantor also remains the dealer of surprises. This article first appeared in Asharq Al-Awsat.
Arab News
an hour ago
- Arab News
A Vermont dairy farm was raided. The mixed messages from Washington since then have increased fears
MONTPELIER: After six 12-hour shifts milking cows, José Molina-Aguilar's lone day off was hardly relaxing. On April 21, he and seven co-workers were arrested on a Vermont dairy farm in what advocates say was one of the state's largest-ever immigration raids. 'I saw through the window of the house that immigration were already there, inside the farm, and that's when they detained us,' he said in a recent interview. 'I was in the process of asylum, and even with that, they didn't respect the document that I was still holding in my hands.' Four of the workers were swiftly deported to Mexico. Molina-Aguilar, released after a month in a Texas detention center with his asylum case still pending, is now working at a different farm and speaking out. 'We must fight as a community so that we can all have, and keep fighting for, the rights that we have in this country,' he said. The owner of the targeted farm declined to comment. But Brett Stokes, a lawyer representing the detained workers, said the raid sent shock waves through the entire Northeast agriculture industry. 'These strong-arm tactics that we're seeing and these increases in enforcement, whether legal or not, all play a role in stoking fear in the community,' said Stokes, director of the Center for Justice Reform Clinic at Vermont Law and Graduate School. That fear remains given the mixed messages coming from the White House. President Donald Trump, who campaigned on a promise to deport millions of immigrants working in the US illegally, last month paused arrests at farms, restaurants and hotels. But less than a week later, the assistant secretary of the Department of Homeland Security said worksite enforcement would continue. Such uncertainty is causing problems in big states like California, where farms produce more than three-quarters of the country's fruit and more than a third of its vegetables. But it's also affecting small states like Vermont, where dairy is as much a part of the state's identity as its famous maple syrup. Nearly two-thirds of all milk production in New England comes from Vermont, where more than half the state's farmland is dedicated to dairy and dairy crops. There are roughly 113,000 cows and 7,500 goats spread across 480 farms, according to the Vermont Agency of Agriculture, Food and Markets, which pegs the industry's annual economic impact at $5.4 billion. That impact has more than doubled in the last decade, with widespread help from immigrant labor. More than 90 percent of the farms surveyed for the agency's recent report employed migrant workers. Among them is Wuendy Bernardo, who has lived on a Vermont dairy farm for more than a decade and has an active application to stop her deportation on humanitarian grounds: Bernardo is the primary caregiver for her five children and her two orphaned younger sisters, according to a 2023 letter signed by dozens of state lawmakers. Hundreds of Bernardo's supporters showed up for her most recent check-in with immigration officials. 'It's really difficult because every time I come here, I don't know if I'll be going back to my family or not,' she said after being told to return in a month. Like Molina-Aguilar, Rossy Alfaro also worked 12-hour days with one day off per week on a Vermont farm. Now an advocate with Migrant Justice, she said the dairy industry would collapse without immigrant workers. 'It would all go down,' she said. 'There are many people working long hours, without complaining, without being able to say, 'I don't want to work.' They just do the job.'
Al Arabiya
an hour ago
- Al Arabiya
Israel, Hamas set to resume Gaza ceasefire talks as Netanyahu due to meet Trump
Israel and Hamas are set to hold indirect talks in Qatar for a second day on Monday, aimed at securing a ceasefire and hostage deal in Gaza, ahead of a meeting in Washington between Israeli Prime Minister Benjamin Netanyahu and Donald Trump. The US president has said a deal could be reached this week. Before departing for Washington on Sunday, Netanyahu said that Israeli negotiators had been given clear instructions to achieve a ceasefire under conditions that Israel has accepted. An Israeli official described the atmosphere so far at the Gaza talks, mediated by Qatar and Egypt, as positive. Palestinian officials said that initial meetings on Sunday had ended inconclusively. A second Israeli official said the issue of humanitarian aid had been discussed in Qatar, without providing further details. The Truce talks have been revived following last month's 12-day Israeli air war against its arch-foe Iran, which backs Hamas. The US-backed proposal for a 60-day ceasefire envisages a phased release of hostages, Israeli troop withdrawals from parts of Gaza and discussions on ending the war entirely. Ending the war has been the main sticking point in past rounds of talks, with Hamas demanding a full end to the conflict in return for releasing all hostages, and Israel insisting it would fight on until Hamas is dismantled. Some of Netanyahu's hardline coalition partners oppose ending the fighting. But, with Israelis having become increasingly weary of the 21-month-old war, his government is expected to back a ceasefire. The war was triggered on October 7, 2023, when Hamas attacked southern Israel, killing around 1,200 people and taking 251 hostages. Around 20 of the remaining 50 hostages in Gaza are believed to be still alive. Israel's retaliatory military campaign against Hamas has killed more than 57,000 Palestinians, according to Gaza's health authorities, led to a hunger crisis, displaced nearly all the population and left most of the territory in ruins.
