Billionaire Elon Musk has officially launched a new political movement, the “America Party,” marking the most dramatic escalation yet in his spiraling feud with President Donald Trump.
The announcement came just a day after Trump signed his sweeping tax cut and spending bill into law — a bill Musk has fiercely opposed, warning it will “bankrupt the country.” On Saturday, Musk posted on X:
“By a factor of 2 to 1, you want a new political party and you shall have it! Today, the America Party is formed to give you back your freedom.”
The tech mogul’s declaration signals a full-blown political divorce from Trump, whom he once financially backed with $250 million and supported on the campaign trail. Musk even briefly served in Trump’s second-term administration as head of the Department of Government Efficiency (Doge), pushing for drastic federal budget cuts.
Musk vs. Trump: From Bromance to Blow-Up
The relationship began to sour earlier this year, culminating with Musk stepping down from his government post in May and launching public attacks on Trump’s fiscal plans. He criticized the president’s latest bill — which includes $4.5 trillion in tax cuts and spending increases — for ballooning the deficit to over $2.5 trillion.
“This will bankrupt the country,” Musk wrote. “When it comes to waste & graft, we live in a one-party system, not a democracy.”
Trump fired back via Truth Social, mocking Musk’s reliance on government aid:
“Elon may get more subsidy than any human being in history. Without subsidies, he’d probably have to close up shop and head back to South Africa.”
He also threatened to cut off federal subsidies to Tesla, SpaceX, and Starlink, Musk’s companies that have benefited from government contracts and clean energy credits.
Impact on Tesla, GOP, and 2026 Midterms
The feud is already shaking markets. Tesla shares, which had surged to over $488 in December after Trump’s re-election, have since plunged more than 35%, closing last week at $315.35.
Investment firm Azoria Partners has now postponed the launch of a Tesla ETF, citing uncertainty over Musk’s political ambitions. CEO James Fishback publicly asked Tesla’s board to clarify whether Musk will remain focused on running the company.
Meanwhile, Republican insiders fear that the split could fracture Trump’s base and damage GOP chances in the 2026 midterm elections, especially if Musk follows through on his threat to fund primary challenges against lawmakers who supported Trump’s bill.
Can the ‘America Party’ Break the Two-Party System?
Though Musk is ineligible to run for president himself — having been born outside the US — his party could still influence elections by siphoning votes, funding candidates, or forcing policy shifts.
As of now, no formal registration has appeared with the Federal Election Commission, and no party leader has been named.
Observers note that US third parties have historically struggled to break through the dominance of Democrats and Republicans. But with tens of millions of followers on social media, unmatched personal wealth, and a volatile political climate, Musk’s move is being watched closely.
What’s Next?
Musk has vowed to spend heavily to defeat members of Congress who supported the tax bill. He’s also hinted at a broader strategy to disrupt the political status quo, referencing military tactics and historical revolutions on X.
“We’re going to crack the uni-party system… using concentrated force at a precise location on the battlefield,” he posted.
There has been no official response from Trump or the White House to Musk’s announcement.
But one thing is clear: with Elon Musk entering the political arena as an independent disruptor, the 2026 midterms — and possibly US politics at large — may never look the same again.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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