Elon Musk Launches ‘America Party’ After Rift With Trump Over Deficit-Spending Bill

Elon Musk has officially launched a new U.S. political party called the America Party, intensifying his rift with President Donald Trump. The announcement came just a day after Trump signed a controversial tax and spending bill, which Musk warned could “bankrupt the country.”

The decision marks a major split between two powerful figures in U.S. politics and business. Musk and Trump were once closely aligned during Trump’s second term.

Musk Breaks Ties Over Trump’s “Big, Beautiful” Tax Bill

Trump’s new spending package, which includes sweeping tax cuts and expanded federal programs, sparked public backlash from Musk. He had previously chaired the Department of Government Efficiency and invested heavily in Trump’s re-election campaign.

Musk called the bill reckless, pointing to a projected $2.5 trillion federal deficit, up from $2 trillion under President Biden. In a post on his platform X (formerly Twitter), he wrote, “This will bankrupt the country.”

Musk Unveils the America Party in Direct Response

After running a poll on X about forming a new party—which reportedly saw a 2-to-1 vote in favor—Musk followed up by declaring:
“Today, the America Party is formed to give you back your freedom.”

The new party’s platform remains unclear, but Musk has promised to fund efforts to unseat lawmakers who supported the bill. He also hinted at building a broader political movement focused on fiscal discipline, innovation, and “freedom-centric” governance.

Investor Fallout and Tesla Concerns

The announcement immediately rippled through the financial world. Azoria Partners, a major investment firm, announced it would postpone the listing of a Tesla ETF, citing concerns over Musk’s political ambitions.

Azoria CEO James Fishback urged Tesla’s board to clarify Musk’s future role, suggesting that shareholder confidence was shaken by his shift away from business focus. Musk stepped down from his government role in May, raising hopes that he would return full-time to Tesla and SpaceX.

Trump Threatens to Pull Federal Contracts

Trump has reportedly threatened to cut federal subsidies to Musk’s companies. These include billions for clean energy, aerospace, and EV projects. The feud has already hit Tesla’s stock. It peaked at $488 in December 2024 but dropped to $315.35 by early July.

The breakdown in their relationship—once a powerful alliance between Trump’s administration and Musk’s industrial empire—has now become a highly public political and economic battle.

A Tough Road Ahead for Third-Party Politics

Despite his financial firepower, Musk faces a steep uphill battle. The U.S. political system has been dominated by two parties for over 160 years. Trump still holds over 40% approval ratings, even amid criticism of his policies.

Republican strategists worry that this feud could fracture the party’s voter base ahead of the 2026 midterm elections, jeopardizing their hold on Congress.

Whether Musk’s America Party can gain real traction remains to be seen, but one thing is clear—his break from Trump has turned a once-powerful partnership into a national showdown.

Do you think Elon Musk’s America Party can disrupt the two-party system in U.S. politics?

More…

• https://www.cbc.ca/news/world/elon-musk-america-party-1.7578336
• https://www.aljazeera.com/news/2025/7/6/elon-musk-launches-the-america-party-as-feud-with-trump-escalates
• https://www.reuters.com/world/us/musk-says-america-party-is-formed-us-2025-07-05