Elon Musk Announces Formation of New Political Party Amid Tensions with Donald Trump
Elon Musk, the CEO of Tesla and SpaceX, has announced the formation of a new political party called the “America Party” on his social media platform X. This move comes amid a growing public feud with former President Donald Trump, who recently signed a controversial spending bill that Musk has strongly criticized.
Musk stated in an X post that the America Party aims to restore freedom to American citizens. He emphasized that the party’s primary focus for the next 12 months will be on winning seats in the House of Representatives and the Senate. According to Musk, these positions could serve as the deciding vote on contentious laws due to the razor-thin margins in Congress.
The idea of forming a new political party was first suggested by Musk on Friday, when he outlined the possibility of targeting key legislative districts. While he mentioned the potential for supporting a presidential candidate in the future, his immediate goal is to influence the legislative branch.
In response to Musk’s announcement, Trump took to his Truth Social platform to criticize the move. He claimed that Musk had “gone completely off the rails” and questioned the feasibility of starting a third political party in the United States. Trump also implied that Musk was upset because the spending bill eliminated incentives for buying electric vehicles.
Political and Business Reactions
Treasury Secretary Scott Bessent, during an interview with CNN, expressed concerns about Musk’s involvement in politics. He noted that the boards of Musk’s companies would prefer him to focus on business rather than political affairs. Bessent also referenced the popularity of Musk’s Dogecoin (DOGE) project, suggesting that while it was well-received, Musk himself had not been as popular in recent polls.
Musk responded to Bessent’s comments on X, stating that his favorability ratings had improved significantly over the past year. However, recent polls from Economist-YouGov show that Musk’s approval rating has dropped from nearly 50% in November to 35% last month.
Other high-profile figures have also weighed in on Musk’s political ambitions. Billionaire Mark Cuban expressed support for the idea of a new party, sharing fireworks and fire emojis in response to Musk’s announcement. Cuban also mentioned his collaboration with VoterChoice, an organization that helps candidates get on ballots.
Anthony Scaramucci, founder of SkyBridge Capital, reached out to Musk, offering to meet and discuss the America Party. He opened his direct messages for further conversation.
Public Support and Legislative Context
Musk’s announcement came after conducting a July 4 poll on X, asking users if they wanted independence from the two-party system. Approximately 65% of the 1.25 million participants voted “Yes.” This sentiment reflects a growing desire among some Americans for alternative political options.
The “Big Beautiful Bill,” which Trump signed into law on July 4, has been a major point of contention for Musk. The bill includes extensive tax cuts and could add more than $3 trillion to the national debt, according to the Congressional Budget Office. Musk has referred to the legislation as a form of “debt slavery” and criticized it as a “massive, outrageous, pork-filled Congressional spending bill.”
This criticism led to a significant public fallout between Musk and Trump. At one point, Trump even suggested that his office might consider deporting Musk, who is a South African immigrant.
Impact on Tesla and Business Outlook
Musk’s political activities have coincided with volatile times for Tesla. Wall Street analysts, including Tesla bull Dan Ives, have warned that Musk’s political engagements could distract him from his business responsibilities. Earlier in June, Baird analysts downgraded Tesla’s stock, citing the uncertainty caused by the Musk-Trump conflict.
Despite these challenges, Musk continues to push forward with his vision for the America Party, positioning himself as a voice for those who feel disconnected from the current political landscape. Whether this new initiative will gain traction remains to be seen, but it has already sparked significant discussion across the political and business spheres.
