Musk Launches 'America Party' in Fresh Split with Trump

Elon Musk speaks during a press conference with US President Donald Trump (not pictured), at the White House in Washington, DC, US, May 30, 2025.

The rocky relationship between Donald Trump and Elon Musk took a dramatic turn on Saturday, as Musk announced the launch of a new political party — the "America Party" — signalling a deeper rift with the former president.

Just a day after polling his followers on X about forming a new party, Musk declared, “Today, the America Party is formed to give you back your freedom.” He claimed that a majority of respondents favoured the idea, adding, “By a factor of 2 to 1, you want a new political party and you shall have it!”

The move comes in response to Trump’s recently signed tax-cut and spending package, which Musk sharply criticised, calling it fiscally reckless. “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country,” Musk said when asked what caused the shift in his stance on Trump.

Musk, who rose to global prominence through his companies Tesla and SpaceX, had been a key financial backer of Trump’s re-election and led the Department of Government Efficiency during Trump’s second term, focusing on reducing federal spending. But the two have since clashed over economic policy.

Trump reportedly threatened to end federal subsidies to Musk’s companies, further fuelling the feud. Musk, in turn, vowed to fund campaigns to unseat lawmakers who supported the bill.

Republican leaders are increasingly worried that this public falling-out could undermine their prospects in the 2026 midterm elections. The party fears a divided conservative base could cost them their congressional majority.

In another post, Musk drew a historical parallel, referencing ancient Greek general Epaminondas’s victory over Sparta at Leuctra, saying the America Party would “crack the uniparty system” through focused political pressure.

Neither Trump nor the White House issued an immediate response to Musk’s announcement.

Meanwhile, Tesla’s share price, which had soared following Trump’s re-election, has suffered in recent months — falling from a high of over $488 in December to $315.35 at the close of last week.

Despite Musk’s influence and resources, analysts say breaking the two-party dominance in US politics will be a formidable challenge, especially as Trump continues to maintain strong approval ratings in his second term.