Thenewsdose.com
Agencies, July 6, 2025, UPDATED: 3:50 PM
In an extraordinary escalation of tensions between two of the most prominent figures in U.S. politics and business, tech billionaire Elon Musk on Saturday announced the formation of a new political entity—the America Party—just a day after Republican President Donald Trump signed into law a sweeping tax-and-spending package that Musk vehemently opposes.
“Today, the America Party is formed to give you back your freedom,” Musk declared on his social media platform X (formerly Twitter), adding that “by a factor of 2 to 1, you want a new political party and you shall have it!” His declaration follows a viral X poll he posted on Friday, testing the public’s appetite for a break from the Republican-Democratic duopoly that has shaped U.S. politics for more than 160 years.
The immediate flashpoint was Trump’s signature “big, beautiful” tax-cut and spending bill, which Musk lambasted as fiscally reckless. “Increasing the deficit from an already insane $2 trillion under Biden to $2.5 trillion will bankrupt the country,” Musk wrote, in a scathing rebuke posted on X in response to a follower who asked what triggered his political U-turn.
The fallout was swift. Azoria Partners, an investment firm poised to launch a Tesla-focused exchange-traded fund, announced a postponement of the listing. Azoria CEO James Fishback demanded clarification from Tesla’s board regarding Musk’s political ambitions, warning that the new party could shake investor confidence in Musk’s corporate focus, especially after his recent exit from the federal Department of Government Efficiency, a Trump-era initiative he briefly led.
The feud between Trump and Musk—often dubbed a clash between the world’s most powerful man and the world’s richest—has deepened since the start of Trump’s second term, during which Musk emerged not only as a top campaign financier but also a key policy influencer within the administration. His pivot from kingmaker to challenger now threatens to disrupt both the Republican establishment and the fragile loyalty of pro-business conservatives.
Trump, for his part, had earlier threatened to cut off federal subsidies to Musk’s companies—Tesla and SpaceX among them—calling into question the future of billions in government contracts and clean energy incentives that have fueled Musk’s empire. Neither the White House nor Trump’s campaign team issued an immediate response to Musk’s political pivot.
Within Republican circles, there’s growing anxiety that Musk’s rebellion could fracture the party’s base ahead of the critical 2026 midterm elections, where the GOP is striving to defend its slim congressional majority. Several GOP strategists privately acknowledged that Musk’s clout—both financial and cultural—makes him a uniquely disruptive force, capable of attracting independent voters and fiscally conservative Republicans disillusioned by Trump’s spending.
The market, too, has responded with volatility. Tesla’s stock, which had surged past $488 per share following Trump’s November reelection, has since lost more than half its value, closing last week at $315.35. Analysts cite not only Musk’s erratic political involvement but also concerns about strategic distraction at a time when Tesla faces mounting global competition and regulatory scrutiny.
Despite Musk’s deep pockets and online megaphone, breaking the entrenched two-party system remains a formidable challenge. No third-party movement in recent history has succeeded in securing significant electoral ground at the national level. Yet Musk appears undeterred, reportedly planning to bankroll candidates aligned with the America Party and targeting lawmakers who backed Trump’s deficit-heavy legislation.
In a polarised political climate, Musk’s move signals a rare convergence of high finance, populist messaging, and libertarian ethos. This combination could either revolutionise the political landscape or dissipate into yet another billionaire-backed experiment. What is certain, however, is that the once-strategic alliance between Musk and Trump has evolved into a high-profile civil war with consequences for Wall Street, Washington, and beyond.