Elon Musk Launches ‘America Party’ After Fallout with Trump – A New Twist in US Politics

July 06, 2025: Billionaire tech tycoon Elon Musk has stirred the American political pot once again—this time by launching his own political outfit, the America Party. The announcement came via his social media platform X (formerly Twitter), where Musk called for an alternative to the traditional Republican and Democratic parties, labelling them as a “one-party system” when it comes to financial mismanagement.

So, What’s the America Party?

Musk’s post referenced an earlier poll he had conducted, where he asked users if they wanted a new political party. With an overwhelming response in favour, Musk declared, “By a factor of 2 to 1, you want a new political party and you shall have it!”

He further stated, “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom.”

However, as of now, there’s no official record with the Federal Election Commission (FEC) to confirm that the America Party has been formally registered. Also, since Musk was born in South Africa, he’s not eligible to run for the U.S. presidency—and he hasn’t yet announced who will lead the party.

Musk vs. Trump: What Went Wrong?

The announcement comes just weeks after a dramatic fallout between Musk and former U.S. President Donald Trump. Once known for being close allies—Musk had even danced alongside Trump at campaign events and reportedly invested $250 million to support his re-election—their relationship took a nosedive earlier this year.

Musk was appointed to lead the Department of Government Efficiency (nicknamed DOGE), where he was expected to slash unnecessary spending. But things turned sour when Musk openly criticised Trump’s massive tax and spending bill, which passed Congress by a narrow margin last week.

The law, dubbed Trump’s “big, beautiful bill,” includes sweeping tax cuts and spending plans that analysts say could add over $3 trillion to the U.S. deficit in the next decade. What particularly irked Musk was the bill’s lack of focus on green energy and electric vehicles—Tesla’s bread and butter.

Trump’s Retaliation

In response, Trump lashed out on his platform Truth Social, writing, “Elon may get more subsidy than any human being in history, by far… Without subsidies, Elon would probably have to close up shop and head back home to South Africa.”

Trump even hinted that DOGE could investigate the billions in government contracts Musk’s companies—like Tesla, SpaceX, and Starlink—receive.

• Tesla is a global leader in electric vehicles.
• SpaceX handles satellite launches for the U.S. government.
• Starlink provides crucial satellite internet services, including for military use in Europe and the U.S.

Can the America Party Really Change the Game?

Historically, third parties in the U.S. have struggled to gain real traction. While groups like the Libertarian Party, Green Party, and People’s Party have made headlines, they haven’t posed any serious challenge to Republican or Democratic dominance.

That said, with Musk’s global influence, deep pockets, and massive online following, the America Party could bring in some disruptive energy—even if it doesn’t immediately shift the political balance.

But until the party is officially registered and a leader is declared, it remains a bold, headline-making idea more than a functioning political entity.