Elon Musk has announced plans to officially launch a new U.S. political party, the “America Party.” The decision comes as a dramatic shift in his political engagement and signaling a deepening rift with President Donald Trump. Musk announced the formation of the party over the weekend, following days of speculation and public polling on his social media platform, X.
Musk, who previously aligned himself with Trump and played a key role in the president’s second term as head of the Department of Government Efficiency (DOGE), broke ties with the administration over what he called the “insane” $5 trillion tax cut and spending bill signed into law on Friday.
“When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,” Musk posted Saturday. “Today, the America Party is formed to give you back your freedom.”
By a factor of 2 to 1, you want a new political party and you shall have it!
— Elon Musk (@elonmusk) July 5, 2025
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. https://t.co/9K8AD04QQN
Musk said the new political party will initially focus on flipping a small number of closely contested congressional seats—targeting “2 or 3 Senate seats and 8 to 10 House districts.” Musk believes that in an era of razor-thin legislative margins, such a strategy could make the America Party a decisive force in shaping national policy.
Despite the announcement, the party has not yet been formally registered with the Federal Election Commission. Several filings containing variations of “America Party,” “DOGE,” and even “X” have appeared in the FEC database, but many appear to be inauthentic or joke filings, listing unverifiable email addresses and lacking formal structure.
Following the announcement, Trump dismissed Musk’s plan as “ridiculous,” saying he has gone “completely off the rails, essentially becoming a train wreck” and that third parties only cause “confusion,” asserting that the U.S. is and always has been a two-party system.
The move could have serious implications for the 2026 midterm elections. Musk was the largest individual donor in the 2024 election cycle, contributing over US$280 million—mostly to Trump and other Republican candidates. If he redirects that financial power to support America Party candidates or campaign against sitting members who supported the bill, it could disrupt tight races and potentially shift control of Congress.
Musk’s break with Trump also raises concerns for Tesla and SpaceX, both of which rely heavily on federal subsidies and government contracts. Trump has already threatened to cut off such support, and Tesla shares have experienced significant volatility amid the political fallout. On Saturday, an investment firm postponed a planned Tesla ETF listing, citing uncertainty around Musk’s priorities.
While third parties traditionally struggle to gain traction in U.S. politics, Musk’s vast personal wealth and high profile could provide the America Party with a uniquely powerful launchpad. Still, it remains to be seen whether his political movement will resonate with voters or shareholders.
“I will spend the money to unseat every single lawmaker who supported that disgusting abomination of a bill,” Musk said Sunday, doubling down on his pledge to reshape Congress.
