Nematic order is the breaking of rotational symmetry in the presence of translational invariance. While originally defined in the context of liquid crystals, the concept of nematic order has arisen in crystalline matter with discrete rotational symmetry, most prominently in the tetragonal Fe-based superconductors where the parent state is four-fold symmetric. In this case the nematic director takes on only two directions, and the order parameter in such Ising-nematic systems is a simple scalar. Here, using a novel spatially-resolved optical polarimetry technique, we show that a qualitatively distinct nematic state arises in the triangular lattice antiferromagnet Fe$_{1/3}$NbS$_2$. The crucial difference is that the nematic order on the triangular lattice is a Z$_3$, or three-state Potts-nematic order parameter. As a consequence, the anisotropy axes of response functions such as the resistivity tensor can be continuously re-oriented by external perturbations. This discovery provides insight into realizing devices that exploit analogies with nematic liquid crystals.
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