In a dramatic turn of events that has sent shockwaves through American politics, billionaire entrepreneur Elon Musk announced on Saturday, July 5, 2025, that he is forming a new political party called the “America Party.”
The announcement comes after a bitter public feud with President Donald Trump over the recently passed domestic policy legislation.
The Breaking Point: Trump’s ‘Big, Beautiful Bill’
“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk declared on his social media platform X.
“Today, the America Party is formed to give you back your freedom.”
The catalyst for this political earthquake was President Trump’s signature domestic policy legislation, which he dubbed the “big, beautiful bill.”
The sweeping $3.3 trillion package, which includes tax cuts, infrastructure spending, and stimulus measures, was signed into law by Trump during a July Fourth ceremony at the White House.
Musk, who had been Trump’s largest individual campaign donor in 2024, contributing over $280 million, vehemently opposed the legislation.
He called it a “disgusting abomination” that would increase the deficit from “an already insane $2T under Biden to $2.5T.”
From Allies to Adversaries
The relationship between the world’s richest man and the world’s most powerful has deteriorated rapidly over the past months.
Musk, who initially served as a close adviser to Trump and led the Department of Government Efficiency (DOGE), stepped down from his government role in May 2025.
The feud escalated dramatically when Trump threatened to cut off billions of dollars in federal subsidies that Musk’s companies receive.
In response, Musk conducted a poll on X asking his 220 million followers whether it was “time to create a new political party in America that actually represents the 80% in the middle.”
With 65.4% of over 1.2 million respondents voting “yes,” Musk declared the people had spoken.
The America Party’s Vision
While details about the party’s full platform remain scarce, Musk has indicated that the America Party will focus on fiscal conservatism and reducing government waste.
He criticized both Democrats and Republicans, calling them a “uniparty” system that has failed to address the nation’s mounting debt crisis.
“Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” Musk posted earlier this week.
The billionaire suggested the party would initially target strategic congressional races rather than attempting a broad national launch.
“Laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts,” Musk wrote, adding that “would be enough to serve as the deciding vote on contentious laws.”
Challenges Ahead: Building a Third Party
Creating a viable third party in America faces enormous structural challenges.
The Democratic and Republican parties have dominated American politics for over 160 years, and breaking their duopoly requires overcoming significant legal and financial hurdles.
“Only the richest person in the world could make a serious effort at creating a new American political party,” veteran election lawyer Brett Kappel told CBS News.
Each state has different requirements for ballot access, ranging from collecting thousands of signatures to meeting specific vote thresholds in previous elections.
The process is not only time-consuming but also extraordinarily expensive, potentially costing hundreds of millions of dollars.
Additionally, federal contribution limits cap individual donations to political parties at $44,300 annually to national committees and $10,000 to state parties.
This is significantly less than what Musk can contribute to his super PAC, America PAC, which faces no such restrictions.
Market Reaction and Business Impact
The announcement has already begun affecting Musk’s business interests.
Investment firm Azoria Partners postponed the listing of a Tesla exchange-traded fund, with CEO James Fishback demanding clarity on Musk’s political ambitions.
Tesla’s stock, which had soared to over $488 in December following Trump’s reelection, has lost more than half its value, closing last week at $315.35.
The volatility reflects investor concerns about Musk’s divided attention between his business empire and political ambitions.
Political Implications for 2026 and Beyond
Republicans have expressed concern that Musk’s new party could split the conservative vote in the 2026 midterm elections.
However, some GOP lawmakers remain skeptical about Musk’s intentions.
“Elon Musk is not gonna create a new political party,” Rep. Jimmy Patronis of Florida told NewsNation.
“Trump knows that sometimes you’re going to have falling out with those that you trust.”
Despite the skepticism, a recent Quantus Insights poll found that 40% of registered voters would consider voting for a Musk-backed third party.
This includes significant numbers of Republican voters, suggesting potential disruption to the GOP’s electoral coalition.
The Road Ahead
As of Saturday evening, it remains unclear whether Musk has taken formal steps to register the America Party with the Federal Election Commission.
No filings under that name were immediately visible in FEC records.
Musk has warned his political opponents that while “Trump has 3.5 years left as President,” he “will be around for 40+ years.”
This long-term perspective suggests the America Party may be more than a temporary protest movement.
Whether Musk can translate his wealth, influence, and social media following into a viable political force remains to be seen.
What is certain is that his announcement has injected new uncertainty into an already volatile American political landscape.
