Elon Musk Launches 'America Party' After Dispute with Trump

Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, has announced the formation of a new political entity, the "America Party," marking a significant departure from his previous alliance with President Donald Trump and the Republican Party. This move follows Musk's vocal opposition to the recently passed tax cuts and spending bill, which he criticized for substantially increasing the national debt.

Musk's political involvement intensified in early 2025 when he was appointed by President Trump to lead the Department of Governmental Efficiency (DOGE), an initiative aimed at reducing federal spending and streamlining government operations. During his tenure, Musk advocated for significant budget cuts and efficiency measures. However, in May 2025, he resigned from his position, expressing frustration over the administration's fiscal policies, particularly the "Big, Beautiful Bill," which he condemned for its projected addition of over $3 trillion to the national debt.

On July 6, 2025, Musk announced the creation of the "America Party" through his social media platform, X. This decision was preceded by a poll on X, where over 65% of 1.2 million respondents supported the idea of a new political party. Musk stated, "By a factor of two to one, you want a new political party and you shall have it! When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a ... ." The America Party aims to disrupt the traditional two-party system by targeting key congressional seats to influence legislation, with a focus on fiscal responsibility and government efficiency.

The announcement has elicited varied reactions. President Trump dismissed the move as "ridiculous," emphasizing the effectiveness of the existing two-party system. He remarked, "I think starting a third party just adds to confusion." Treasury Secretary Scott Bessent expressed skepticism about the party's potential impact and suggested that the boards of Musk's businesses might be displeased with his political endeavors. Bessent noted, "I imagine that those boards of directors did not like this announcement yesterday, and will be encouraging him to focus on his business activities, not his political activities."

Musk's political activities have also impacted his business ventures. Following the announcement of the America Party, Tesla's stock experienced a significant decline, dropping 6.8% on July 7, 2025. Analysts have expressed concerns that Musk's political focus may distract from Tesla's urgent business challenges, including declining electric vehicle sales and potential loss of regulatory credit revenue.

The formation of the America Party adds to the historical narrative of third-party movements in the United States. Historically, third parties have struggled to gain significant traction due to the entrenched two-party system and the winner-takes-all electoral structure. Musk's initiative faces similar challenges, including ballot access, fundraising, and building a broad-based coalition. However, his substantial personal resources and public profile may provide unique advantages in this endeavor.

In conclusion, Elon Musk's formation of the America Party represents a significant development in U.S. politics, reflecting broader debates about fiscal policy, government efficiency, and the viability of third-party movements. The coming months will reveal the extent to which Musk's political ambitions will influence both the political landscape and his business ventures.