Asger Risom
Elon Musk launches the “America Party” in a direct challenge to Donald Trump’s leadership and policies, intensifying their high-stakes political feud.
Billionaire Elon Musk is once again injecting disruption into American politics, this time by creating a new political party. The move comes amid rising tensions between Silicon Valley’s most prominent voices and Washington’s policy decisions.
Musk Forms New Political Movement
Musk, who once backed Trump both financially and politically, announced on his X platform Saturday that the “America Party” has officially been formed.
The move follows his outspoken opposition to Trump’s newly signed tax bill, which Musk slammed as a budget-busting disaster.
“Today, the America Party is formed to give you back your freedom,” Musk posted. The announcement came a day after he asked his followers whether the U.S. needed a new political party. According to Musk, responses favored the idea by a 2-to-1 margin.
A Rift That Could Reshape 2026 Elections
Trump’s tax and spending bill, which Musk claims will balloon the federal deficit to $2.5 trillion, was the tipping point in their already strained relationship.
The former Tesla CEO, who previously led the Department of Government Efficiency under Trump, now plans to fund campaigns against lawmakers who supported the bill.
Republican strategists worry the feud could fracture their base. Some are particularly concerned about Musk’s influence among younger voters and tech-minded independents, which could shift key races.
Tesla Shares and Investor Backlash
The fallout isn’t limited to politics. Musk’s announcement rattled Tesla investors. Azoria Partners, an investment firm, postponed a planned Tesla ETF listing.
CEO James Fishback urged Tesla’s board to clarify Musk’s political intentions, citing shareholder concerns.
Tesla stock has been volatile throughout Musk’s political battles. It surged after Trump’s reelection in November but has since tumbled more than 35%, closing last week at $315.35.
Despite his wealth and influence, Musk faces steep odds in disrupting America’s entrenched two-party system.
Trump remains popular with a sizable GOP base, and his administration has not commented on Musk’s latest political maneuver.
As reported by Reuters, the battle between Musk and Trump could have far-reaching implications for the 2026 elections and beyond.
