Elon Musk Launches 'America Party' After Fallout With Trump Over Tax Bill

Musk vs Trump

The growing rift between U.S. President Donald Trump and billionaire entrepreneur Elon Musk intensified on Saturday, with Musk announcing the creation of a new political party. The Tesla and SpaceX CEO unveiled the “America Party,” criticizing Trump’s newly signed tax-and-spending legislation as fiscally disastrous.

Musk made the announcement on his social media platform, X, one day after polling his followers about the need for a new party. “By a factor of 2 to 1, you want a new political party—and you shall have it!” he posted. “Today, the America Party is formed to give you back your freedom.”

The announcement followed Trump’s signing of his long-touted “big, beautiful” tax bill on Friday—a policy Musk publicly condemned. Musk, who previously served as head of the Department of Government Efficiency in Trump’s second term, has been one of the president’s top financial backers, contributing hundreds of millions to his re-election campaign. His opposition to the bill marks a sharp turn in their political relationship.

Investors reacted swiftly. Later in the day, Azoria Partners announced it would delay the launch of a Tesla-focused exchange-traded fund. James Fishback, CEO of Azoria, urged Tesla’s board to clarify Musk’s future political intentions, noting that shareholder confidence had been shaken by his return to political activism after stepping down from government duties in May.

Earlier this year, Musk warned that he would financially support efforts to oust lawmakers who backed the bill, and hinted at forming a new political party.

Tensions between Musk and Trump had been simmering for weeks. Trump recently threatened to end billions in federal subsidies granted to Musk’s companies, a move that could have significant implications for Tesla and SpaceX.

Republican leaders are reportedly worried that the public clash could divide conservative voters and jeopardize the party’s chances in the 2026 midterm elections.

Responding to a question on X about what prompted his break with Trump, Musk cited soaring government debt: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”

Neither the White House nor President Trump has issued an official response to Musk’s announcement.

The public feud—framed by many as a power struggle between the world’s richest man and the world’s most powerful—has had financial consequences. Tesla’s stock, which surged after Trump’s re-election in November and peaked at over $488 in December, has since plunged, closing last week at $315.35.

While Musk’s financial resources are vast, disrupting the entrenched two-party system in American politics remains an enormous challenge. Despite controversies, Trump continues to enjoy strong support, with his approval ratings in his second term staying consistently above 40%.

Highlights:

Elon Musk announces formation of new “America Party” on his platform X.
Move comes after Trump signs a major tax-and-spending bill Musk opposes.
Musk warns the bill will increase the deficit to $2.5 trillion and bankrupt the nation.
Azoria Partners delays Tesla ETF listing, citing concerns about Musk’s political focus.
Republicans fear Musk-Trump split could damage 2026 election chances.
Tesla stock has dropped sharply amid the political fallout.
Trump and the White House have yet to comment on Musk’s announcement.

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