Elon Musk Launches 'America Party' Amid Tensions with President Trump

Elon Musk, the billionaire entrepreneur behind Tesla and SpaceX, announced on July 5, 2025, the formation of a new U.S. political entity called the "America Party." This move comes amid escalating tensions with President Donald Trump, particularly over the recently enacted "One Big Beautiful Bill" (OBBBA), a comprehensive tax and spending legislation.

Musk's decision followed a public poll he conducted on his social media platform, X (formerly Twitter), where approximately 65% of 1.25 million respondents supported the creation of a new political party. In response to the poll results, Musk stated, "By a factor of 2 to 1, you want a new political party and you shall have it!"

The OBBBA, signed into law by President Trump on July 3, 2025, extends individual tax rates from the 2017 Tax Cuts and Jobs Act, increases defense and border enforcement spending, and introduces cuts to social programs like Medicaid and SNAP. The Congressional Budget Office estimates the bill will add approximately $2.8 trillion to the national debt by 2034. Musk criticized the bill for its expansive spending, which he claimed would increase the national deficit by $3.9 trillion over the next decade.

In response to the OBBBA and growing dissatisfaction with the two-party system, Musk proposed the creation of the America Party. He conducted a poll on X, asking users if they wanted "independence from the two-party (some would say uniparty) system." The poll concluded with 65.4% of respondents in favor. Following the poll, Musk declared, "By a factor of 2 to 1, you want a new political party and you shall have it!" He further stated, "When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy."

Musk outlined a focused electoral strategy for the America Party, aiming to target two to three Senate seats and eight to ten House districts in the 2026 midterm elections. He believes that securing these seats would provide the party with the leverage to influence contentious legislation, ensuring that laws "serve the true will of the people."

President Trump criticized Musk's initiative, stating, "The Democrats have lost their way, but it's always been a two-party system... and I think starting a third party just adds to confusion."

As a South African-born U.S. citizen, Musk is constitutionally ineligible to run for the presidency but can support or establish political parties and back candidates for other offices. The America Party faces numerous challenges, including complex state regulations for ballot access and the need for substantial organizational infrastructure. Musk's significant financial resources could aid in overcoming some of these hurdles, but the party's long-term viability remains uncertain.

The announcement of the America Party had immediate economic repercussions. Tesla's stock experienced a 6.8% decline, resulting in a $15 billion reduction in Musk's net worth. Despite this setback, Musk's wealth rebounded to $394.6 billion within a week, maintaining his position as the world's richest individual.

The formation of the America Party by Elon Musk introduces a new dynamic into the U.S. political landscape, challenging the entrenched two-party system and prompting discussions about fiscal responsibility, political representation, and the influence of business leaders in politics.