Billionaire Elon Musk is floating a new political party dubbed the "America Party" — but the idea could face major hurdles.

While Musk was able to pour millions of dollars into pro-Trump super PACs last year, he would not legally be able to bankroll a political party. Third parties generally have to spend a great deal of money to secure ballot access before focusing on getting their candidates elected.

Mr. Musk’s involvement in politics and his financial support for the president’s campaign were once seen by investors as a benefit to Tesla, fueling a steep rise in company shares after the election last year. That association has now turned into a liability. Tesla shares are down 40 percent from their peak in December.

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

President Trump slammed the tech billionaire's announcement that he's forming a third political party. Here's what to know about the America Party.