Elon Musk Launches ‘America Party’ in Dramatic Split from Trump

The rift between President Donald Trump and his top campaign backer, Elon Musk, deepened Saturday as the billionaire entrepreneur announced the formation of a new political movement — dubbed the "America Party"— in direct opposition to Trump’s latest fiscal policy.

Just a day after polling his X followers about the need for a new political party, Musk declared, “Today, the America Party is formed to give you back your freedom.” He added, “By a factor of 2 to 1, you want a new political party and you shall have it!”

Musk’s bold move follows Trump’s signing of his signature tax-cut and spending bill, a measure Musk has fiercely criticized as financially reckless. "Trump's ‘big, beautiful’ tax bill will bankrupt America," Musk stated, making clear his break with the president.

As the founder of Tesla and SpaceX, Musk has poured hundreds of millions into Trump’s re-election bid and spearheaded government efficiency initiatives during Trump’s second term.

However, his latest announcement sent shockwaves through the financial world. Investment firm Azoria Partners promptly delayed the launch of a Tesla ETF, with CEO James Fishback urging Tesla’s board to address concerns about Musk’s political ambitions and their impact on shareholder confidence.

Musk had previously threatened to target lawmakers who supported Trump’s controversial bill, promising to fund efforts to unseat them. In response, Trump warned of ending the billions in federal subsidies flowing to Musk’s companies—a threat that could escalate the feud.

Republican insiders now worry that the Musk-Trump standoff could jeopardize the party’s prospects in the crucial 2026 midterm elections.

When asked on X what triggered his dramatic turnaround, Musk cited Trump’s ballooning deficit, warning that raising it from “an already insane $2 trillion under Biden to $2.5 trillion will bankrupt the country.”

Neither Trump nor the White House immediately commented on Musk’s announcement.

The high-profile feud has already rattled Tesla’s stock, which surged after Trump’s reelection but plunged by over 50% in April, closing last week at $315.35.

While Musk’s wealth gives him significant firepower, breaking the entrenched Republican-Democratic dominance remains a formidable challenge.

Trump’s approval ratings have consistently held above 40% throughout his second term, underscoring the uphill battle ahead for any new party.