Billionaire entrepreneur Elon Musk has announced the formation of a new political movement, the America Party, marking a dramatic rupture with President Donald Trump and escalating tensions between the two once-allies. Musk, who was born in South Africa and leads several high-profile companies including Tesla and SpaceX, unveiled the party over the weekend in response to the passage of Trump’s sweeping tax and spending legislation, dubbed the “Big Beautiful Bill.”
Speaking to reporters before returning to Washington from New Jersey on Sunday, Trump dismissed Musk’s new party as “ridiculous,” insisting that the United States was built on a stable two-party system. “The Democrats have lost their way, but it’s always been a two-party system,” Trump said. “I think starting a third party just adds to confusion.”
The legislation at the heart of the rift eliminates tax credits for electric vehicles—a direct blow to Tesla—and significantly increases spending on border security, defense, and energy production, while cutting back on social support programs. The bill was signed into law by Trump on Friday amid widespread opposition from Democrats and concern from some Republicans.
Musk responded sharply. “When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,” he posted on X, the social media platform he owns. “Today, the America Party is formed to give you back your freedom.”
Musk’s declaration marks a clear departure from his previous political stance. Once a key supporter of Trump’s re-election campaign—reportedly contributing as much as $250 million in 2024—Musk had even served as head of Trump’s short-lived Department of Government Efficiency (DOGE). But the passage of the “Big Beautiful Bill” appears to have been the breaking point.
In a Truth Social post, Trump accused Musk of having gone “off the rails,” describing his former ally as a “train wreck over the past five weeks.”
It remains uncertain whether the America Party has been officially registered. As of Sunday, no formal filings with the Federal Election Commission (FEC) confirmed its legal establishment. Several listings used variations of “America Party” or “DOGE,” though many included questionable contact details.
Despite that, Musk spent the weekend actively engaging with users on X, soliciting suggestions for the new party and hinting at a major political role in the 2026 midterms. He vowed to oppose every lawmaker who supported Trump’s bill, writing, “The Republican Party has a clean sweep of the executive, legislative and judicial branches and still had the nerve to massively increase the size of government.”
The move may carry risks for Musk. Tesla and SpaceX both depend heavily on federal contracts, and renewed political controversy could jeopardize those relationships. Tesla shares dipped on Monday amid the uncertainty surrounding Musk’s political ambitions.
Just weeks ago, Musk had said he planned to step back from political involvement. Now, his unexpected return to the political arena could reshape the conversation ahead of the next election cycle.
