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 comes amid a public split between Musk and his former ally, U.S. President Donald Trump.
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.
Just a day after polling his followers on X about the need for a new political force, Musk made it official, posting: “Today, the America Party is formed to give you back your freedom.”
By a factor of 2 to 1, you want a new political party — and you shall have it!
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 asked on X what triggered his shift from supporting Trump to openly opposing him, Elon Musk responded: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”
Neither Trump nor the White House has issued a response to Musk’s announcement.
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.