Elon Musk Announces Formation of New Political Party in the United States

WASHINGTON, 6 July 2025 – Elon Musk, the billionaire entrepreneur and head of Tesla and SpaceX, has announced the formation of a new political party in the United States, which he has named the America Party. Musk made the declaration via a post on X (formerly Twitter) on Saturday.

“So that your freedom may be restored, the America Party is born today,” Musk wrote, marking a dramatic new chapter in his increasingly vocal political involvement.

There was no immediate response from either former US President Donald Trump or the White House following Musk’s announcement.

A Break from Trump

Once a close ally of Donald Trump, Elon Musk has grown critical of the former president’s recent policies. The tipping point appears to be Trump’s support for the controversial “Big Beautiful Bill”—a sweeping package of tax cuts and increased federal spending. Musk has publicly condemned the bill, warning that “it will bankrupt the United States.”

Although Musk previously supported Trump with significant donations during his election campaigns and briefly served as head of the Office of Government Efficiency in Trump’s second term, their relationship has soured in recent months. With the launch of the America Party, their rift has reached new heights.

A Response to Public Sentiment

Prior to the announcement, Musk conducted a poll on X asking whether Americans believed there was a need for a new political party. According to him, two-thirds of respondents supported the idea. “They asked for it,” Musk said, “and now they’ll have it.”

Political Disruption Ahead of Midterms

The timing of Musk’s announcement is significant, coming just ahead of the 2026 US midterm congressional elections. Political analysts warn that the escalating feud between Musk and Trump could have serious consequences for the Republican Party, potentially jeopardising its bid to retain a congressional majority.

Meanwhile, Musk has stated his intention to fund campaigns aimed at unseating lawmakers who supported Trump’s tax and spending plan.

In retaliation, Trump has reportedly threatened to cut off federal subsidies currently received by Musk’s companies.

Market Fallout

The Musk-Trump feud has also reverberated in the stock market. Tesla shares, which soared to $488 each following Trump’s re-election, have since plummeted by more than half. As of last week, Tesla was trading at $315.35 per share.

A Daunting Political Landscape

Despite Musk’s immense wealth and influence, political observers caution that breaking the duopoly of the Republican and Democratic parties will be no easy feat. The two parties have dominated American politics for over 160 years, and disrupting that entrenched system will require more than just resources—it will demand widespread public trust and institutional support.