The tattered relationship between Donald Trump and his main campaign financier, Elon Musk, has taken another fractious turn. The space and automotive billionaire announced on Saturday the formation of a new political entity, the ‘America Party’. This development follows a day after Musk queried his followers on his X platform about the need for a new party.
“Today, the America Party is formed to give you back your freedom,” Musk declared in a post. “By a factor of 2 to 1, you want a new political party and you shall have it!” The announcement comes on the heels of President Trump signing his self-styled “big, beautiful” tax cut and spending bill into law on Friday, a move Musk had fiercely opposed, warning it would bankrupt America.
Background of the Feud
Elon Musk, who ascended to become the world’s richest man through his ventures Tesla and SpaceX, has been a significant financial supporter of Trump’s election campaigns. He also led the Department of Government Efficiency from the start of Trump’s second term, focusing on reducing government spending. However, the two have since fallen out spectacularly over disagreements about the recent tax bill.
The billionaire had previously hinted at forming a new political party and expressed intentions to financially support efforts to unseat members of Congress who backed the bill. This week, tensions escalated as Trump threatened to cut off federal subsidies to Musk’s companies, a move that could have significant financial implications for the billionaire’s business empire.
Political Implications and Reactions
Republicans have expressed concern that Musk’s ongoing feud with Trump could jeopardize their chances of maintaining a majority in the 2026 midterm congressional elections. A key point of contention for Musk is the increase in the national deficit, which he highlighted in a post on X, stating, “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”
Musk also drew historical parallels, referencing the growth of Greece from subjugation to pre-eminence in the ancient world. He cited the tactics of Epaminondas at the Battle of Leuctra as a strategy to dismantle the entrenched two-party system in the United States.
“The way we’re going to crack the uni party 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,” Musk posted.
Market and Public Reaction
The feud between Musk and Trump, often described as a clash between the world’s richest man and the world’s most powerful, has already impacted Tesla’s stock price. Following Trump’s re-election in November, Tesla’s stock soared to a high of over $US488 ($744) in December. However, it has since lost more than half its value, closing last week at $US315.35.
Despite Musk’s substantial financial resources, experts suggest that breaking the long-standing Republican-Democratic duopoly will be challenging. The two-party system has dominated American political life for over 160 years. Meanwhile, Trump’s approval ratings have remained relatively stable, holding firm above 40 percent throughout his second term, despite often divisive policies.
Looking Ahead
As the political landscape continues to shift, the formation of the America Party introduces a new dynamic into the upcoming election cycles. While there has been no immediate comment from Trump or the White House regarding Musk’s announcement, the implications of this move could resonate across both political and business arenas.
Observers will be closely watching how this development unfolds and whether Musk’s new party can gain traction in a political system historically resistant to third-party influences. The coming months will likely reveal more about the strategies and potential alliances that could shape the future of American politics.
