Elon Musk announced Saturday the formation of the “America Party,” a new political movement aimed at challenging the two-party system following his bitter public feud with President Donald Trump over the administration’s signature spending bill.
The Tesla CEO declared in a post on X that 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, following a poll that drew 1.2 million votes with 65.4% supporting the creation of a third party.
The announcement marks the culmination of a spectacular falling out between the world’s richest man and the president, just weeks after Musk departed his role leading the Department of Government Efficiency. The billionaire had spent nearly $300 million backing Trump and other Republicans in last year’s election.
The rift began over Trump’s “One Big Beautiful Bill Act,” which would add $3.4 trillion to federal deficits over the next 10 years and includes a provision to raise the debt ceiling by $5 trillion. Musk called the legislation a “disgusting abomination” and warned it would lead to “debt slavery” for the United States.
Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame,” Musk wrote on X earlier this week. “And they will lose their primary next year if it is the last thing I do on this earth.”
Explosive Exchange Between Former Allies
The conflict between Trump and Musk erupted publicly Thursday when Trump told reporters he was “very disappointed” in Musk. Within hours, their relationship disintegrated in what Reuters described as an all-out brawl on social media.
Trump threatened to cut off federal subsidies to Musk’s companies, posting on Truth Social: “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.” He later suggested “We might have to put DOGE on Elon…. DOGE is the monster that might have to go back and eat Elon.”
Musk responded by backing calls for Trump’s impeachment, replying “Yes” to a post saying Trump should be impeached and replaced by Vice President JD Vance. He also claimed without evidence that “Trump is in the Epstein files. That is the real reason they have not been made public.”
The feud caused Tesla’s stock to drop 14.3%, losing about $150 billion in market value in what the company’s largest single-day decline.
Political Challenges for New Party
political experts expressed skepticism about the viability of Musk’s America Party, citing significant structural hurdles in the American political system. “It is very difficult to do. I don’t think Elon Musk has really looked into the procedures of creating a political party,” said Larry Sabato, director of the University of Virginia’s Center for Politics.
The new party reportedly plans to focus “on just 2 or 3 Senate seats and 8 to 10 House districts” initially. Musk suggested the party would “caucus independently” and “legislative discussions would be had with both parties.”
I don’t think he has the patience,” said political consultant Mac McCorkle. “How is he going to vet candidates? There’s going to be a lot of wannabes who think, ‘Hey, Elon Musk is going to fund me. What the heck?'”
Bill Passes Despite Opposition
President Trump signed the One Big Beautiful Bill Act into law Friday at a Fourth of July White House event, despite Musk’s fierce opposition. The legislation extends Mr. Trump’s 2017 Tax Cuts and Jobs Act and includes critical pro-growth policies that will cut taxes by an additional $1,300 for a family of four.
The bill passed the House by a narrow 218-214 vote after Republican leaders worked through the night to secure support. All 212 Democrats voted in unison against the bill, and they were joined by two Republicans, Reps. Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania.
The last two weeks, there’s never been anything like it, as far as winning, winning, winning,” Trump said during the signing ceremony. The White House maintains the bill “slashes deficits” and the debt, while “unleashing economic growth.”
Broader Implications for GOP
Republicans have expressed concern that the Musk-Trump feud could damage their political prospects. Republicans have expressed concern that Musk’s on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections,” Reuters reported.
Former Trump adviser Steve Bannon, who has long opposed Musk’s influence, said the billionaire “crossed the Rubicon” by calling for impeachment. “This is so outrageous. It has crossed the line,” Bannon told NPR.
Investment firm Azoria Partners announced it would postpone the listing of a Tesla exchange-traded fund, with CEO James Fishback citing concerns about Musk’s political ambitions undermining shareholder confidence.
What Happens Next
As Senate Republicans continue debating their version of the spending bill, Musk has vowed to campaign against any member who supports it. The legislation requires only a simple majority to pass under budget reconciliation rules.
While third parties have historically struggled in American politics, Musk’s vast resources and social media following of 220 million on X could prove influential in close races. Trump warned Saturday there would be “serious consequences” if Musk funds Democratic candidates against Republicans.
Breaking the Republican-Democratic duopoly will be a tall order,” Reuters noted, “given that it has dominated American political life for more than 160 years.
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Image credit:
Elon Musk. Photo by Gage Skidmore, via Wikimedia Commons, licensed under Creative Commons Attribution-ShareAlike 3.0 Unported (CC BY-SA 3.0).
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