Key Points
- Elon Musk, CEO of Tesla and SpaceX, has announced the formation of a new political group, the “America Party,” following a public and dramatic split with President Donald Trump.
- Musk’s move comes after he criticized Trump’s “One Big Beautiful Bill,” a sweeping tax and spending law, which Musk claims will add trillions to the national debt.
- Musk made the announcement on his social platform X, following a July 4th poll in which 65% of over 1.2 million respondents supported a third-party alternative.
- President Trump responded by labeling Musk “off the rails” and a “train wreck,” and threatened to cut off federal subsidies to Musk’s companies and even consider deportation.
- Musk was previously a major donor and close adviser to Trump, leading the Department of Government Efficiency in the administration.
- There is no evidence yet that Musk has formally registered the America Party with the Federal Election Commission.
- Musk has called for targeting vulnerable Senate and House seats to make the America Party a “deciding vote” in Congress.
- The feud has had ripple effects, including the postponement of a Tesla-focused ETF and raising questions about Musk’s leadership at Tesla.
- Political analysts and election lawyers note that forming a viable third party in the U.S. is a daunting challenge, even for someone with Musk’s resources.
- The story is developing, with both Musk and Trump continuing to issue statements and threats in public forums.
Billionaire entrepreneur Elon Musk has announced the creation of a new political entity, the “America Party,” marking a dramatic rupture with ally President Donald Trump and sending shockwaves through the U.S. political landscape. The announcement, made on Musk’s social media platform X, comes in direct response to Trump’s signature tax and spending legislation, which Musk has fiercely opposed. The fallout between the two prominent figures has been public, personal, and politically consequential, with both sides trading barbs and threats as the nation watches.
Why Did Elon Musk Announce the America Party?
As reported by CBS News, Musk’s decision to float the “America Party” follows an escalating feud with President Trump over the administration’s flagship tax and domestic policy bill. Musk, who was once Trump’s largest individual campaign donor and a key adviser, publicly declared,
“If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE”.
CNN’s reporting confirms that Musk’s opposition to what he called a “massive, outrageous, pork-filled Congressional spending bill” was the catalyst for the split. After the bill passed, Musk posted,
“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom”.
How Did the Announcement Unfold on Social Media?
According to Al Jazeera, Musk conducted a poll on July 4th—America’s Independence Day—asking his X followers if they wanted “independence from the two-party (some would say uniparty) system.” Over 1.2 million people responded, with 65% voting “yes.” Musk then declared,
“By a factor of 2 to 1, you want a new political party and you shall have it!”.
Business Insider notes that Musk’s post announcing the America Party came just after the poll results, stating,
“Today, the America Party is formed to give you back your freedom”.
The Wall Street Journal observed that while Musk made the announcement, he has not yet provided evidence of taking legal steps to register the party.
What Has Been Donald Trump’s Response?
As reported by The New York Times, President Trump responded on Truth Social, describing Musk as “off the rails” and a “train wreck.” Trump wrote,
“I am disheartened to see Musk go ‘off rails,’ turning into a TRAIN WRECK over the last five weeks,”
and dismissed the America Party effort as doomed, citing the historical failure of third parties in the U.S..
Newsweek details that Trump also took issue with Musk’s policy stances, especially regarding electric vehicle subsidies and NASA leadership, and implied that Musk’s business interests could be in jeopardy as a result of the political split. Reuters and DW report that Trump has threatened to cut off billions in federal contracts and subsidies to Musk’s companies and even suggested the possibility of deporting Musk, who was born in South Africa and became a U.S. citizen in 2002.
What Is the History of the Musk-Trump Relationship?
CNN Business provides a timeline of the Musk-Trump relationship, noting that Musk was a prominent supporter of Trump’s 2024 campaign and led the Department of Government Efficiency, which sought to cut government spending. The relationship soured as Musk became increasingly critical of Trump’s legislative agenda, culminating in a series of public disputes and Musk’s ultimate resignation from his government role.
BBC News and other outlets confirm that Musk’s announcement comes just weeks after his formal exit from the White House, where he had been tasked with reducing the federal deficit. The feud reignited as the controversial spending bill neared passage, with Musk threatening to support primary challengers against Republican lawmakers who backed the bill.
What Are the Legal and Political Hurdles Facing the America Party?
CBS News quotes veteran election lawyer Brett Kappel, who stated,
“Only the richest person in the world could make a serious effort at creating a new American political party.”
The process involves navigating a maze of state laws, ballot access requirements, and potential litigation.
CNN and the Wall Street Journal both highlight that, as of now, there is no indication that Musk has filed the necessary paperwork with the Federal Election Commission to formally establish the America Party as a recognized political entity.
What Are Musk’s Plans for the America Party?
According to Al Jazeera, Musk has outlined a strategy for the America Party to focus on “just 2 or 3 Senate seats and 8 to 10 House districts,” with the goal of becoming the deciding vote on key legislation. Musk stated,
“They will lose their primary next year if it is the last thing I do on this Earth,”
referring to lawmakers who supported Trump’s bill.
Business Insider notes that Musk has positioned the America Party as a home for the “80% in the middle,” aiming to provide an alternative to the current two-party system.
How Has the Business Community Reacted?
Reuters reports that the announcement of the America Party has already had business consequences. Investment firm Azoria Partners postponed the launch of its Tesla-focused ETF, citing concerns about Musk’s political ambitions and their potential impact on Tesla’s future. Azoria CEO James Fishback called for clarity from Musk regarding his political and corporate responsibilities.
What Do Political Analysts Say About Musk’s Chances?
CBS News and Al Jazeera both emphasize the formidable obstacles facing any new party in the U.S., noting that even with Musk’s wealth and influence, the entrenched two-party system and complex legal requirements make success unlikely.
What Is the Current Status and What Comes Next?
Multiple outlets, including Politico and Time, note that the America Party exists primarily as a social media declaration at this stage, with no formal organizational structure or leadership announced. Musk has indicated that supporting a presidential candidate is not off the table, but the immediate focus will be on congressional races.
Trump, meanwhile, continues to criticize Musk and the America Party, warning of “serious consequences” for Musk’s businesses and reiterating his belief that third parties cannot succeed in the U.S. political system.
Elon Musk’s announcement of the America Party marks a significant and public fracture with Donald Trump, with both men leveraging their platforms to rally supporters and issue threats. The development has drawn intense media scrutiny, sparked debate about the viability of third parties in America, and raised questions about the intersection of business, politics, and personal rivalry at the highest levels of power. The story continues to unfold as both Musk and Trump double down on their positions, and the nation watches to see whether Musk’s latest venture will reshape the American political landscape or fade into history as another failed third-party experiment.