Nationwide — Billionaire entrepreneur Elon Musk has officially launched a new political party in the United States, declaring a sharp break from former ally and current President Donald Trump. The announcement, made Saturday on Musk’s X platform, follows a public fallout between the two powerful figures over Trump’s recently signed tax and spending bill. Musk, who once served as Trump’s top campaign financier and held a key role in his administration, now says the legislation will “bankrupt America” and vows to challenge the status quo through what he’s calling “The America Party.”
According to Huffington Post, just one day after polling his followers on X about the need for a new political movement, Musk declared, “Today, the America Party is formed to give you back your freedom.” He cited overwhelming support from users and expressed confidence that a third-party revolution was possible. His critique focused sharply on Trump’s economic policy, specifically the new bill, which Musk claims pushes the national deficit from an “already insane” $2 trillion under Biden to $2.5 trillion. “This will bankrupt the country,” he posted.
The clash marks a dramatic escalation in the once-close relationship between Trump and Musk. Musk had poured hundreds of millions into Trump’s re-election effort and was appointed to head the Department of Government Efficiency, a post focused on cutting federal expenditures. But that alliance has since crumbled, with Musk now threatening to bankroll campaigns against any lawmakers who supported the bill. In response, Trump has reportedly considered pulling federal subsidies from Musk’s companies, including Tesla and SpaceX.
Republican insiders are reportedly uneasy about the public feud, fearing it could fracture the conservative base and jeopardize their control of Congress in the 2026 midterm elections. While Trump continues to enjoy steady approval ratings above 40 percent in his second term, Musk’s political aspirations are now seen as a wildcard. Musk himself has cited historical military strategies, comparing his plan to disrupt the two-party system to Epaminondas’s legendary victory over Sparta—calling for “concentrated force at a precise location on the battlefield.”
The financial market has already responded to the drama. Tesla stock, which surged after Trump’s reelection last November and reached a peak of $488 in December, has since plummeted by more than 50 percent. By the end of last week, it had settled at $315.35, reflecting investor anxiety over Musk’s political pivot and ongoing conflict with the White House. Neither Trump nor White House officials have issued public statements about Musk’s latest move.
Despite Musk’s wealth and influence, political experts agree that taking on the entrenched two-party system will be a monumental challenge. For more than 160 years, American politics has been dominated by Republicans and Democrats. Even with Musk’s resources and social media reach, disrupting that dynamic may prove difficult—especially with Trump still commanding a loyal base and deep institutional support. Still, Musk insists that the time for radical change has come.