Elon Musk launches ‘America Party’ after split with Trump: What it means for US politics

Elon Musk announced Saturday that he has officially launched a new political party in the United States, called the America Party. The declaration follows a dramatic fallout with President Donald Trump over a newly signed tax and spending bill.

Musk made the announcement on his social media platform X, describing the party as a response to the country’s “one-party system.”

The move came just a day after Trump signed his flagship tax-cut bill into law — legislation Musk condemned for slashing electric vehicle subsidies and ballooning the national debt.

“You Want a New Party? You Got It”
"You want a new political party and you shall have it!" Musk posted. "Today, the America Party is formed to give you back your freedom."

The Tesla and SpaceX CEO accused both Republicans and Democrats of enabling "waste and graft."

He said his new party would prioritise fiscal responsibility and innovation. While Musk has not outlined a detailed platform, he emphasised that the America Party will aim to unseat lawmakers who supported the bill — especially in the 2026 midterm elections.

Musk once led Trump’s Department of Government Efficiency, advocating for deep spending cuts. But their alliance fractured when Congress moved to phase out a $7,500 EV tax credit — a core incentive for Tesla customers.

He resigned from the administration in protest and began vocally opposing the bill, calling it “economic sabotage” and a threat to future-focused industries.

In recent posts, Musk blamed the bill for favoring outdated industries and increasing the federal deficit by $5 trillion. "If this insane spending bill passes, the America Party will be formed the next day," he warned earlier in the week.

Following the bill’s passage, Musk pledged to spend heavily to defeat the lawmakers who backed it.

The billionaire’s rift with Trump has grown increasingly personal. Trump has reportedly threatened to pull government contracts from Musk’s companies and called the efficiency department Musk once headed a “monster that may go back and eat Elon.”

Musk, meanwhile, signaled he’s ready for a political fight, referencing military tactics to explain his strategy: “We’ll crack the uniparty system like Epaminondas broke Sparta.”

Tesla shares have suffered amid the political drama, sliding from $488 in December to $315.35 last week. Some Republicans now worry Musk’s new party could divide the conservative vote and damage their chances in the 2026 midterms.

While American third parties have historically failed to gain lasting ground, Musk’s massive fortune and influence could make his effort stand out. Still, experts warn that building a viable third party in the U.S. remains a legal and logistical uphill battle.

As of Sunday morning, neither Trump nor the White House had publicly commented on Musk’s announcement.

Billionaire Elon Musk has launched the America Party, signaling a bold political move after a public rift with President Donald Trump.

The party's formation follows Trump’s signing of a sweeping tax and spending bill. Musk opposed the legislation for eliminating EV subsidies and ballooning the federal deficit, vowing to fight lawmakers who backed it.

Musk’s break with Trump has raised alarms within the Republican Party, with fears his new party could split conservative voters in the 2026 midterms. Musk says his focus will be on flipping key congressional seats.

Calling the bill “economic sabotage,” Musk accused both parties of promoting “waste and graft.” He argues the law harms emerging industries and worsens the national debt.

Tesla shares have dropped amid the escalating Musk-Trump feud, as investors weigh the impact of Musk’s political moves on his business empire.

While details are sparse, Musk says the America Party will initially focus on a few key races, using concentrated efforts rather than broad national campaigns.

As of Saturday, the America Party had not been registered with the Federal Election Commission, raising doubts about its legal status.

The party idea emerged during Musk’s feud with Trump, which led to his resignation from a top government role and a series of sharp social media posts.

Musk cited an X platform poll where two-thirds of users supported the creation of a new political party. “You want a new party, and you shall have it,” he declared.

Musk was a major Trump donor and once led the Department of Government Efficiency. His stance shifted after opposing the tax bill he says threatens the country’s fiscal future.

Musk warns the legislation will push the US deeper into debt, estimating it could add over $3 trillion to the federal deficit over the next decade.