In a stunning turn of events, Elon Musk, the tech titan known for his revolutionary ventures, has sent shockwaves through the business and political landscapes with his foray into politics. As he announces the formation of the "American Party," experts are raising serious doubts about its viability, while his business empire teeters on the brink of a crisis.

Tesla's Troubles Deepen

Since Musk's increasing involvement in politics, Tesla, his electric vehicle flagship, has been facing a perfect storm of challenges. The company's stock has taken a nosedive, with its share price nearly halving from its all-time high. The latest blow came with the news of the American Party, causing Tesla's stock(Tesla Motors, Inc.(TSLA.US) ) to plummet nearly 7% on Monday. Year-to-date, the stock has already tumbled 22%, leaving investors worried and on edge.

But the problems don't stop at the stock market. Tesla's sales are also in freefall. In the second quarter of 2025, global deliveries dropped a staggering 13.5% compared to the same period last year. The situation is even bleaker in Europe, where sales plummeted 39% in the first four months of the year, leading to a significant loss of market share. "Boycott Tesla" signs have started popping up in various locations, signaling growing discontent among consumers.

The Tesla boardroom is no longer a haven of calm either. Facing mounting pressure from investors, the board is demanding that Musk clarify whether his political ambitions are interfering with his duties as CEO. The future of Tesla under Musk's leadership hangs in the balance as the company grapples with these intertwined crises.

Ripple Effects Across the Empire

The impact of Musk's political move extends far beyond Tesla. 

SpaceX, his aerospace company, is staring down the barrel of potential contract risks. With former President Trump threatening to review NASA and defense contracts, SpaceX could face delays in securing crucial launch permits, casting a shadow over its future projects.

Meanwhile, Tesla's foray into the autonomous driving space with Robotaxi has hit a roadblock. The National Highway Traffic Safety Administration has launched an investigation into alleged illegal driving practices following the service's launch in Texas. In May, the agency also requested data on Robotaxi's operations in low - visibility conditions, adding another layer of regulatory scrutiny.

Experts Sound the Alarm

Political pundits and experts are unanimous in their skepticism about Musk's political ambitions.

 Professor Noel of Georgetown University, an authority on political history and methodology, points out that the U.S. political system simply doesn't allow for third - party success. "The American public has a deep - seated attachment to the existing two - party system, and breaking that mold is an uphill battle," he warns.

Lee Goodman, the former chair of the Federal Election Commission, highlights the practical hurdles. "Raising campaign funds is a monumental task. Musk would need thousands of donors to finance his new party, and that's just the tip of the iceberg," he says.

And election lawyer Capell is blunt: "The laws in each state are heavily tilted in favor of the two major parties. There's no way Musk can establish a new national party before the 2026 midterm elections."

As Elon Musk juggles his political aspirations with the management of his business empire, the world watches with bated breath. Will his political gambit lead to the downfall of his once - invincible empire, or will he pull off yet another improbable comeback? One thing is certain: the drama surrounding Musk's latest move is far from over....