Elon Musk Launches “America Party” After Breaking With Trump Over Tax Bill

Elon Musk has officially launched a new political movement, the "America Party," after a sharp fallout with President Donald Trump over a controversial tax and spending bill. Announcing the party on his social platform X, Musk said, “By a factor of 2 to 1, you want a new political party and you shall have it,” claiming the move is aimed at restoring American freedom.

The split follows Trump’s signing of his signature “big, beautiful” tax bill on Friday, which Musk opposes, warning it would raise the federal deficit to an unsustainable $2.5 trillion and push the country toward bankruptcy. Musk, who previously backed Trump’s re-election and even led the Department of Government Efficiency in Trump’s second term, criticized the bill as fiscally reckless.

Musk had earlier hinted at forming a third party and vowed to spend heavily to unseat lawmakers who supported the legislation. Tensions escalated after Trump threatened to end federal subsidies for Musk’s companies, including Tesla and SpaceX.

The high-profile rift between the billionaire entrepreneur and the Republican president has sparked concern among GOP leaders ahead of the 2026 midterm elections, with fears it could fracture conservative support.

When asked what triggered his turnaround on Trump, Musk cited the ballooning deficit, calling it “insane.” Drawing historical parallels, he tweeted about using “concentrated force” to break the current two-party dominance, referencing the ancient Greek general Epaminondas.

Tesla’s stock, once soaring post-Trump’s reelection, has taken a hit amid the feud, dropping from a December peak of over $488 to $315.35 last week. Despite Musk’s influence and wealth, challenging the long-standing Republican-Democrat stronghold will be a formidable battle. Neither Trump nor the White House has commented on Musk’s announcement.