WASHINGTON: Tech mogul Elon Musk announced the creation of a new political entity — the America Party — marking a significant and public rupture with US President Donald Trump, whom he once strongly supported.
“By a factor of two to one, you want a new political party — and you shall have it!” Musk declared on his social media platform, X, formerly known as Twitter.
The formation of the America Party came just one day after Musk ran a poll on X, asking users whether a new political party was needed in the United States. The results, according to Musk, showed overwhelming support.
“Today, the America Party is formed — to give you back your freedom,” he added.
Musk vs. Trump: From Ally to Adversary
The dramatic announcement followed deepening tensions between Musk and Trump over the president’s new tax-and-spending legislation, which Musk strongly opposed. Signed into law Friday, Trump dubbed the bill his “big, beautiful tax cut,” but Musk has warned it could “bankrupt America”, citing a projected increase in the federal deficit to $2.5 trillion.
Once a key financial backer of Trump’s re-election campaign, Musk also led the Department of Government Efficiency, a post he was given at the start of Trump’s second term. But their alliance has frayed dramatically.
In a recent post, Musk explained his fallout with Trump:
“Increasing the deficit from an already insane $2 trillion under Biden to $2.5 trillion. This will bankrupt the country.”
He further hinted at a strategic revolution in American politics, referencing ancient Greek military tactics:
“We’re going to crack the uniparty system using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield.”
Political and Economic Shockwaves
Musk’s bold political move sent shockwaves across Washington, with Republicans expressing concerns about the potential impact on their party’s performance in the upcoming 2026 midterm elections. Analysts warn that a high-profile defection like Musk’s — coupled with his immense resources — could fracture conservative support and siphon votes from the Republican base.
The White House and President Trump have not commented publicly on Musk’s new party, but tensions escalated last week when Trump threatened to withdraw federal subsidies to Musk’s companies — Tesla and SpaceX — both of which have benefited from billions in government support.
Market Fallout and Political Uncertainty
The Musk-Trump feud has already had financial consequences, particularly for Tesla. The company’s stock, which soared to over $488 following Trump’s re-election, has since tumbled, closing last week at $315.35 — a decline of nearly 35%.
Despite Musk’s popularity and influence, breaking the entrenched Republican–Democratic duopoly remains an uphill battle. The two-party system has dominated American politics for more than 160 years, and even now, Trump’s approval ratings remain above 40%, despite ongoing controversies.
Still, Musk’s move signals a growing discontent with traditional political structures. As the world’s richest man and a symbol of innovation and disruption, his entry into the political arena with a third-party challenge is likely to reshape the landscape in the lead-up to 2026.
