On July 5, 2025, Elon Musk announced the launch of a new political group called the America Party. This move came after disagreements with President Donald Trump, especially over a recent $3.3 trillion tax and spending bill that Musk criticized for increasing national debt.
Musk shared the news on his social media platform X, saying that about 60% of respondents in a recent poll supported the idea of a new party. He said the America Party aims to offer more choices to voters in a system he called a “one-party system.”
Musk and Trump had been close allies during the 2024 election, with Musk contributing over $280 million to Trump’s campaign and later leading a government efficiency group. Their relationship deteriorated after Musk resigned and criticized Trump’s spending policies. Trump responded by threatening to review federal support for Musk’s companies.
Instead of running candidates nationwide, Musk plans to focus on a few key congressional races to influence legislation. He compared this strategy to concentrating efforts in specific areas rather than spreading resources thin.
The America Party faces challenges, including state-level rules for ballot access, limited success of third parties in the past, and restrictions on political funding once officially recognized.
The announcement has already affected Tesla’s stock, which declined from December’s high to July. Republicans worry the new party could divide conservative voters in upcoming elections, while Trump dismissed Musk’s criticism as related to the loss of electric vehicle tax credits.
As of July 6, the America Party is not yet officially registered. Musk’s plan reflects an effort to introduce an alternative to the existing two-party system, with a focus on select races rather than a broad national campaign.
