Elon Musk forms new 'America Party' in move into politics

WASHINGTON,— Billionaire Elon Musk announced the formation of a new political party on Saturday, escalating a political rift with U.S. President Donald Trump following the signing of a controversial tax and spending bill.

Musk, who leads Tesla and SpaceX, said the new group — dubbed the “America Party” — was established in response to what he described as reckless fiscal policy.

The move follows Trump’s Friday signing of what he called a “big, beautiful” tax overhaul, which Musk criticized as unsustainable.

“Today, the America Party is formed to give you back your freedom,” Musk wrote on his social platform X. “By a factor of 2 to 1, you want a new political party and you shall have it!”

The announcement came just one day after Musk polled his X followers on whether the United States needs another party. The poll showed strong support for the idea, according to Musk.

Musk, who previously backed Trump’s re-election with significant financial support, was also appointed head of the Department of Government Efficiency at the start of Trump’s second term. The department was created to curb federal expenditures. Musk stepped down from that role in May.

Fallout from Musk’s political shift was felt quickly on Wall Street. Azoria Partners CEO James Fishback stated Saturday that the firm is delaying the launch of a Tesla-focused exchange-traded fund (ETF).

Fishback, in a post on X, called for Tesla’s board to clarify Musk’s political intentions, citing investor concerns about his priorities.

“Elon’s creation of a new party is a distraction,” Fishback wrote. “Shareholders were led to believe he would concentrate on Tesla after leaving government.”

In previous statements, Musk had hinted at starting a new political organization and vowed to fund campaigns against lawmakers who supported the latest budget measure.

Trump earlier warned he would consider halting federal subsidies to Musk’s businesses, which include electric vehicle and space launch programs that benefit from U.S. funding.

Some Republican strategists are reportedly worried the public split could damage the party’s outlook for the 2026 congressional midterms.

When asked by a user on X what prompted his shift from supporting to opposing Trump, Musk responded: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”

The White House and Trump’s team have not issued a public response to Musk’s Saturday announcement.

Tesla shares have fluctuated amid the ongoing tensions. Following a post-election surge that saw the stock climb above $488 in December, shares fell sharply and ended last week at $315.35.

Despite Musk’s financial power, experts say challenging the Republican-Democratic hold on national politics remains an uphill battle.

The two-party structure has defined U.S. governance for over 160 years, while Trump’s support among core voters remains largely stable above 40%, according to recent polls.

U.S. President Donald Trump, May 22, 2025. Photo: The White House

Trump says Musk’s new political party idea is ‘ridiculous’

President Donald Trump on Sunday dismissed Elon Musk’s plans to start a new political party, calling the idea “ridiculous” and unnecessary. He also criticized a previous decision to appoint a Musk associate to lead NASA, saying it could have led to a conflict of interest because of Musk’s role in the space industry.

“I think it’s ridiculous to start a third party,” President Trump told reporters. “We’ve had great success with the Republican Party. The Democrats have lost their direction, but our system has always worked with two parties. Creating a third one just adds confusion.”

Trump argued that the U.S. political structure was built around two major parties and said third-party efforts have never succeeded in the long run.

He also said that having someone close to Musk in charge of NASA would have raised ethical concerns, given Musk’s business ties to space exploration.

(With files from Reuters)