In a dramatic turn of events, Elon Musk, the billionaire CEO of Tesla and SpaceX, has announced the formation of a new political party called the America Party. This move comes after a public falling out with President Donald Trump over a controversial tax cuts law signed on July 4, 2025. Musk’s decision marks a significant shift from his earlier support for Trump, raising questions about the future of American politics and Musk’s own business empire.
A Rift Over Tax Cuts
Musk, once a close ally of Trump and head of the Department of Government Efficiency (DOGE), broke ranks with the president over a sweeping tax cuts bill. The legislation, which Musk called a “disgusting abomination,” has been criticized for potentially increasing the federal deficit by a staggering $5 trillion. Musk’s opposition intensified as the bill moved through Congress, leading him to threaten the creation of a new political party if it passed. On Saturday, July 5, 2025, he followed through, announcing the America Party on X, the social media platform he owns.
“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk wrote on X. “Today, the America Party is formed to give you back your freedom.” His harsh words reflect deep frustration with both Republicans and Democrats, whom he accuses of reckless spending.
The America Party’s Ambitions
Musk’s new party aims to shake up the political landscape ahead of the 2026 midterm elections, which will determine control of Congress. Historically, third parties in the U.S. struggle to compete with the dominant Republican and Democratic parties. However, Musk’s immense wealth—he reportedly spent $250 million supporting Trump in the 2024 election—gives the America Party a unique advantage. If Musk is willing to invest heavily, political analysts suggest he could influence key races and challenge the two-party system.
On Sunday, Musk actively engaged with X users, seeking feedback on the party’s platform and strategy. He also reiterated his threat to target members of Congress who supported Trump’s tax bill, vowing to back candidates who prioritize fiscal responsibility. “The Republican Party has a clean sweep of the executive, legislative, and judicial branches and STILL had the nerve to massively increase the size of government,” Musk posted, highlighting his belief that the government is bloated and inefficient.
Risks and Challenges
Musk’s political gamble comes with significant risks. His companies, including Tesla and SpaceX, rely on billions in government contracts, and his feud with Trump could jeopardize these relationships. Tesla’s stock has already taken a hit in the market, and some analysts warn that Musk’s focus on politics could alienate investors. Treasury Secretary Scott Bessent, who clashed with Musk during their time at DOGE, suggested on CNN’s State of the Union that Musk’s political ventures might not be well-received. “If you look at the polling, Elon was not [popular],” Bessent said, adding that Musk’s board of directors might urge him to prioritize business over politics.
It’s also unclear whether Musk has formally registered the America Party. As of Sunday morning, several entities with names like “America Party” or “DOGE” appeared in the Federal Election Commission database, but their legitimacy is questionable, with contact details like “wentsnowboarding@yahoo.com.” This suggests that Musk’s announcement may have sparked a flurry of copycat registrations, complicating his efforts to establish a credible party.
A Reversal of Course
Musk’s decision to dive back into politics is a stark reversal from his earlier stance. In May 2025, as his role at DOGE was winding down, he claimed he would spend “a lot less” on political activities. His renewed focus on politics, driven by his opposition to Trump’s tax cuts, signals a willingness to leverage his wealth and influence to reshape the political landscape. Whether the America Party can gain traction remains to be seen, but Musk’s track record of disrupting industries suggests he won’t be easily ignored.
What’s Next?
The formation of the America Party is a bold and risky move by one of the world’s most influential figures. As Musk prepares to challenge the political establishment, all eyes will be on how he navigates the complexities of party-building, public opinion, and his own business interests. With the 2026 midterms on the horizon, the America Party could either fizzle out like many third-party efforts before it or become a game-changer in American politics. Only time will tell if Musk’s vision for a freer, fiscally responsible America resonates with voters.