Elon Musk announced the launch of a new political party on Saturday, naming it the “America Party” and declaring it would give people back their freedom.
The move marks a sharp escalation in his public feud with President Donald Trump, coming just a day after Trump signed a major tax and spending bill into law—legislation Musk said would bankrupt the country.
Musk made the announcement on his X platform after polling his followers about forming a new party. “By a factor of 2 to 1, you want a new political party and you shall have it,” he wrote.
He criticized Trump’s tax package for pushing the U.S. deficit to $2.5 trillion. Responding to a question about what caused his shift away from Trump, Musk said the growing deficit was the tipping point.
The announcement raised concerns among investors. Azoria Partners postponed the listing of a Tesla exchange-traded fund.
Azoria CEO James Fishback said Musk’s move created uncertainty about his focus on Tesla and asked the company’s board to clarify his political role and future plans.
Musk, who once led the Department of Government Efficiency under Trump and was a major financial backer of his campaign, had earlier promised to fund efforts to unseat lawmakers who supported the tax bill. Trump has responded by threatening to cut off federal subsidies to Musk’s companies.
Republican leaders worry the ongoing rift between Musk and Trump could affect their chances in the 2026 midterm elections. Despite Musk’s influence and financial power, creating a third political force remains difficult in a system long dominated by Republicans and Democrats.
Tesla’s share price, which rose sharply after Trump’s reelection, peaked above $488 in December but fell by more than 50% by April. It closed last week at $315.35. Neither Trump nor the White House commented on Musk’s announcement.
