WASHINGTON, July 6 — Elon Musk announced the formation of a new political party on Saturday, intensifying his increasingly public feud with President Donald Trump. The billionaire entrepreneur and former Trump ally declared the birth of the “America Party” just one day after the president signed a sweeping tax-cut and spending bill into law — a measure Musk condemned as fiscally reckless.
“Today, the America Party is formed to give you back your freedom,” Musk wrote on his social media platform X. He cited the results of a poll he posted a day earlier, adding, “By a factor of 2 to 1, you want a new political party and you shall have it!”
The rift, which has been simmering for months, exploded into open confrontation following Trump’s approval of the legislation Musk has dubbed a pathway to national insolvency. “Increasing the deficit from an already insane $2 trillion under Biden to $2.5 trillion — this will bankrupt the country,” Musk wrote in response to a user who asked what triggered his turn against the president.
Musk, founder of Tesla and SpaceX and one of Trump’s largest campaign donors, previously headed the Department of Government Efficiency during Trump’s second term, a role he took on to advance cost-cutting reforms across federal agencies. However, he stepped down from the post in May, citing concerns about runaway spending.
Tensions escalated earlier this week when Trump threatened to slash the billions in federal subsidies that have benefited Musk’s companies. The president has not publicly responded to Musk’s new political movement, nor has the White House issued a statement.
Investor unease over Musk’s shifting focus surfaced swiftly. Azoria Partners, a financial firm that had planned to launch a Tesla-focused exchange-traded fund, announced a postponement on Saturday. “We are seeking clarity from Tesla’s board on Musk’s political priorities,” Azoria CEO James Fishback said. “The launch of a political party raises serious concerns for shareholders who believed he would now turn his attention fully to Tesla.”
Tesla stock, which had soared after Trump’s re-election in November and peaked above $488 in December, has been battered amid Musk’s political detours. Shares closed last week at $315.35, down more than 35% from their peak.
The growing fallout is also stirring anxiety within the Republican Party. Several GOP officials worry that a high-profile split between the president and Musk — one of the nation’s most influential businessmen — could divide conservative voters ahead of the 2026 midterms. “It’s a distraction we cannot afford,” a Republican strategist said off record.
Despite Musk’s formidable wealth and online following, experts note that any attempt to dismantle America’s entrenched two-party system faces near-insurmountable odds. The Republican and Democratic parties have dominated U.S. politics for more than 160 years.
Still, Musk seems undeterred. He previously warned that he would fund campaigns to unseat lawmakers who supported the spending bill, signaling that the America Party could quickly evolve from a social media idea into a disruptive force in American politics.
As the battle between the world’s most powerful political leader and its wealthiest private citizen escalates, the outcome may ripple across Washington, Wall Street — and the future of America’s political landscape.
