Elon Musk Launches ‘The America Party’ After Split With Donald Trump

Washington: Tech billionaire Elon Musk announced on Sunday (6 July 2025) the formation of a new U.S. political party called “The America Party,” marking a dramatic public split with former ally President Donald Trump over fiscal policy.

Musk, who was previously one of Trump’s most influential backers and the single largest donor to his 2024 campaign, made the declaration on his social media platform X just a day after Trump signed a controversial spending and tax-cut bill into law. “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk wrote. “Today, the America Party is formed to give you back your freedom.”

The way we’re going to crack the uniparty system is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra:

Extremely concentrated force at a precise location on the battlefield.

— Elon Musk (@elonmusk) July 5, 2025

The announcement follows weeks of escalating tension between Musk and Trump, sparked by Musk’s opposition to the bill he said would balloon the federal deficit. The two briefly reconciled after Musk deleted several critical posts last month, but their rift reemerged in recent days as the legislation advanced through Congress.

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Musk Breaks With Trump Over “Debt Slavery”

Though Musk and Trump have aligned on various cultural and economic issues in recent years, the Tesla CEO has been vocal in his criticism of what he calls the Republican Party’s “debt slavery” policies. He had served as the public face of Trump’s now-defunct Department of Government Efficiency, which aimed to cut federal spending, but stepped down from that role in May.

Musk’s objection to the bill centered on estimates that it would add trillions to the national debt. Despite his earlier influence in shaping the administration’s budget agenda, Musk failed to sway opinion within Trump’s inner circle. Trump signed the bill into law Friday, hailing it as a “big, beautiful win” for working Americans.

Legal Status of “The America Party” Unclear

It is not yet known whether Musk has taken steps to register The America Party with the Federal Election Commission (FEC), a necessary step to field candidates in future elections. As of Saturday, no filings were listed under the new party name.

In other posts on X, Musk hinted that the America Party would debut during the 2026 midterms by supporting select House and Senate candidates, likely focused on fiscal responsibility and anti-corruption. No specific platform details have been released.

Past Efforts to Form Third Parties Have Struggled

While some analysts say public frustration with the two-party system is at an all-time high, creating a viable third party remains legally and financially difficult. Independent campaigns, including those by Ross Perot in 1992 and Ralph Nader in 2000, gained traction but failed to translate into meaningful electoral wins.

“Americans crave more options, but building a lasting political brand outside the Democratic and Republican parties has historically been a losing battle,” said one political scientist who declined to be named.

Azoria Delays Tesla ETF After Musk’s Move

Musk’s political announcement also had ripple effects in the financial world. Azoria Partners, a U.S. investment firm, said Saturday it would delay the launch of its Tesla Convexity ETF, which was set to debut next week. Azoria CEO James Fishback, a vocal Trump supporter, posted on X criticizing Musk’s political ambitions.

“I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla,” Fishback said. The move sparked investor uncertainty about Musk’s focus at Tesla, especially after he stepped back from his White House role in May.

Tesla did not immediately respond to a request for comment.

What Happens Next?

While Musk’s announcement dominated headlines over the weekend, many questions remain about how serious or sustainable The America Party will be. Without a clear platform, leadership structure, or funding disclosures, the move risks becoming another celebrity-fueled flash in the pan.

Still, with his vast personal wealth, social media reach, and influence over both tech and political discourse, Musk’s new political experiment could still inject volatility into an already polarized U.S. electoral landscape.