Billionaire entrepreneur Elon Musk has unveiled a new political movement in the United States — the America Party — aimed at disrupting the long-standing dominance of the Republican and Democratic parties.
Announcing the initiative on his social media platform X, Musk launched a sharp rebuke of both major political parties, accusing them of reckless spending, deep-rooted corruption, and sustaining a political system that he believes has drifted far from the core values of a functioning democracy. According to Musk, the U.S. now operates more like a “unified political machine fueled by waste and self-interest.”
The announcement arrives at a particularly charged political moment, underscoring a widening rift between Elon Musk and his onetime ally, former U.S. President Donald Trump. What was once a relationship built on occasional mutual praise and overlapping interests has now unraveled into open confrontation, with both men trading sharp words in public. The split highlights not only the personal animosity that has emerged between two of the most influential figures in American politics and business, but also the broader ideological and strategic divide over how each envisions their role in shaping the nation’s future.
While Musk is constitutionally barred from running for president due to his foreign birth, he has not yet named a leader for the party. It is also not yet confirmed whether the America Party has been officially registered with U.S. election authorities.
WASHINGTON – The rift between Republican President Donald Trump and his top campaign donor, Elon Musk, deepened on Saturday as the billionaire tech mogul announced the launch of a new political party. Musk slammed Trump’s signature “big, beautiful” tax bill, cautioning that it would steer the nation toward economic collapse.
Barely 24 hours after asking his X followers whether the country needed a new political movement, Elon Musk delivered his answer: “The America Party is born today — a movement to reclaim your freedom.”
By a resounding 2-to-1 margin, the people demand a new political force — and that call will not go unanswered. A new era begins now.
Elon Musk officially launched the America Party on Saturday, signaling his formal entry into the U.S. political arena.
The announcement came just one day after President Donald Trump signed into law his much-touted “big, beautiful” tax-cut and spending package — a bill Musk strongly opposed, warning it would push the nation toward financial collapse.
Musk, the world’s richest man thanks to his Tesla and SpaceX ventures, was a major financial backer of Trump’s re-election campaign, contributing hundreds of millions of dollars. He also led the Department of Government Efficiency during the early part of Trump’s second term, working to curb federal spending.
The first signs of investor unease over Musk’s political move emerged later in the day, as investment firm Azoria Partners announced it would delay the launch of a Tesla-focused exchange-traded fund. Azoria CEO James Fishback shared the update on X, urging Tesla’s board to address concerns about Musk’s political ambitions. He warned that the formation of the America Party has shaken shareholder confidence, especially after expectations that Musk would refocus on the company following his departure from government service in May.
Musk had previously vowed to launch a new political party and use his wealth to target lawmakers who backed the controversial spending bill. In response, President Trump threatened earlier this week to withdraw the billions in federal subsidies that benefit Musk’s companies, including Tesla and SpaceX.
The escalating feud has alarmed Republican leaders, who worry that the growing rift between Musk and Trump could jeopardize their efforts to maintain control of Congress in the 2026 midterm elections.
When questioned on X about his turn from backing Trump to actively opposing him, Elon Musk pointed to one key issue: “Pushing the deficit from an already outrageous $2 trillion under Biden to an even worse $2.5 trillion — that was the breaking point. This will bankrupt the country.”
Neither Trump nor the White House has issued any formal response to Musk’s announcement, a silence that has only fueled speculation about the political ramifications of his move. For Trump, who has rarely shied away from confrontation, the lack of a statement is striking and could signal a calculated wait-and-watch approach as he gauges the public reaction and potential fallout. Meanwhile, the Biden administration has also refrained from commenting, possibly to avoid legitimizing Musk’s new political venture or becoming entangled in a dispute that could distract from its own policy agenda. This absence of immediate reaction from both camps has left the political landscape in a state of uncertainty, with analysts debating whether the silence reflects strategic restraint or internal deliberations on how best to respond.
The escalating feud—frequently described as a clash between the world’s richest man and the world’s most powerful—has taken a toll on Tesla’s stock. After surging following Trump’s re-election in November and peaking at over $488 in December, Tesla shares have since plunged more than 50%, closing last week at $315.35.
While Musk’s financial influence is formidable, challenging the entrenched Republican-Democratic political system—unshaken for over 160 years—will be an uphill battle. Trump, despite his polarizing policies, continues to maintain approval ratings above 40% during his second term.
Senator John Cornyn (R-Texas), currently navigating a tough primary battle, responded cautiously to Elon Musk’s political pivot. “It’s a free country,” he remarked, referencing past third-party bids. “This wouldn’t be the first—we saw it with Ross Perot.”
Meanwhile, Democratic strategist Steve Jarding warned that Musk’s entry into politics could dramatically reshape the 2026 electoral map. “He doesn’t need to win everywhere,” Jarding said. If he backs just a few candidates under the America Party banner and bankrolls them, they’ll instantly be viable. If his mission is to punish Trump, he has the means to flip both the House and Senate.
In report speaking to The Hill, Jarding added, “He doesn’t even need a traditional party. All he has to do is write the checks.” According to FEC filings referenced by The Hill, Musk poured more than $290 million into the 2024 election cycle—an eye-popping figure that has already sparked concern over the potential power of well-funded third-party candidates in battleground races.