International; Date: 06 July, 2025.
In a major political move, Elon Musk announced the formation of a new U.S. political party — the America Party — marking a sharp break from former ally President Donald Trump. The announcement came on Saturday, just a day after Trump signed a sweeping tax-cut and spending bill into law, which Musk criticized as a path to national bankruptcy.
“Today, the America Party is formed to give you back your freedom,” Musk posted on his X platform, noting that users overwhelmingly supported the idea of a new party in a poll he ran earlier.
Once a major financial backer of Trump’s re-election and head of the now-defunct Department of Government Efficiency, Musk had previously vowed to unseat lawmakers who supported the tax bill.
The fallout was swift. Investment firm Azoria Partners postponed the launch of a Tesla ETF, with CEO James Fishback urging Tesla’s board to address Musk’s political direction, citing concerns over his focus on the company after stepping down from his government role in May.
Musk’s companies, Tesla and SpaceX, receive substantial federal subsidies, which Trump recently threatened to withdraw amid their escalating feud. The clash — between one of the world’s richest men and the U.S. President — has rattled Republican leaders ahead of the 2026 midterms.
When asked why he turned against Trump, Musk replied: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”
Tesla’s stock has reflected the tension, peaking at over $488 after Trump’s re-election but plunging to $315.35 by the end of last week.
Despite Musk’s vast resources, experts say challenging the two-party stronghold of American politics will be an uphill battle.
Stay with us for short but detailed updates. Thank you!