Elon Musk Forms ‘America Party’ to Challenge Political Establishment
In a dramatic political shift, Elon Musk has officially launched a new political party in the United States. The Tesla and SpaceX CEO made the announcement on his social media platform X, stating, “Today, the America Party is formed to give you back your freedom.”
The move comes just one day after Musk polled his followers about creating a new party. Citing an overwhelming 2-to-1 majority in favor, Musk declared it was time to act.
The Fallout With Trump Over a Spending Bill
The formation of the America Party follows Musk’s vocal opposition to former President Donald Trump’s newly passed tax-cut and spending bill, which Musk called economically reckless. The legislation, signed into law on Friday, sharply increased the national deficit—a move Musk claims could “bankrupt the country.”
Once allies, Musk and Trump have now fallen out publicly, with Musk pledging to fund efforts to unseat lawmakers who backed the bill. Trump, in turn, threatened to end federal subsidies for Musk’s businesses.
A Deepening Rift with Political Implications
Musk previously supported Trump’s re-election campaign, investing hundreds of millions and leading the government efficiency initiative in the second term. But the growing national deficit and policy differences appear to have soured that relationship.
Asked on X what triggered the shift, Musk responded bluntly: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”
A Battle Against the “Uniparty”
Positioning himself as a reformer, Musk drew historical parallels in another tweet, referencing ancient Greek general Epaminondas. He suggested that the key to defeating entrenched political powers lies in “extremely concentrated force at a precise location.”
Musk’s America Party is intended as a counter to what he terms the “uniparty” system dominated by Democrats and Republicans.
Tesla Shares React Amid Political Uncertainty
Tesla’s stock has shown volatility amid Musk’s political maneuvers. Following Trump’s re-election in November, shares surged past $480, but have since tumbled to around $315 as investor concerns mount over the ongoing feud.
Despite Musk’s wealth and influence, analysts agree that breaking the two-party system in the U.S. will be a formidable challenge. The Republican-Democratic dominance has defined American politics for over a century and a half.
What’s Next?
While there has been no official response from Donald Trump or the White House regarding the America Party announcement, political observers are watching closely as Musk positions himself as a disruptive force in U.S. politics ahead of the 2026 midterm elections.
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