Elon Musk Forms 'America Party' in Response to Feud with Donald Trump and Controversial Spending Bill

Elon Musk's net worth is projected to reach $408 billion by 2025, following significant fluctuations due to the volatile nature of his business ventures in electric vehicles, space technology, and artificial intelligence. His net worth peaked at $486 billion in December 2024, driven by a surge in SpaceX's valuation. Musk's wealth has fluctuated, reaching highs of $420-424.7 billion between March and May, and $412.8 billion in July, but dropping to a low of $342.4 billion in March 2025 due to Tesla's stock decline amid EV market challenges and political issues. His portfolio includes stakes in seven companies: a 12% stake in Tesla (excluding options), a 42% stake in SpaceX (valued at $350 billion), and a 54% stake in xAI (recently valued at $50 billion). He also owns X. Most of his fortune is tied up in ownership stakes in Tesla, SpaceX, and xAI, which are illiquid assets. Selling these stakes could cause significant market and industry disruptions. Musk is projected to become the world's first trillionaire by 2027, leading the list of the richest people in 2025 for the 16th consecutive month.

On a recent weekend, Elon Musk announced his intention to launch a new political party named the "America Party," aimed at restoring freedoms for Americans. He outlined a strategic approach focusing on targeting 2 to 3 Senate seats and 8 to 10 House districts, signaling a laser-focused electoral campaign for the upcoming midterm elections. However, Musk has yet to complete the formal registration process required by the Federal Election Commission (FEC) to officially establish a political party.

The announcement caused notable market reactions, with Tesla shares dropping 7% in premarket trading immediately following Musk's declaration. This indicates investor concern over Musk diverting attention from his roles at Tesla and other companies.

Scott Bessent, Secretary of Treasury, who previously had a heated exchange with Musk in the White House, commented on CNN's "State of the Union" that while Musk’s philosophical principles, likened to the popular cryptocurrency Dogecoin (DOGE), garnered favorable attention, Musk himself remains a controversial figure. Bessent suggested that the boards of Musk’s companies preferred his return to focusing on his leadership roles, where he excels.

President Donald Trump’s previous interactions with Musk and the recent public dispute have added complexities to Musk's political aspirations. Democrats view Musk’s break with Trump with skepticism, perceiving minimal political advantage and potential risks in aligning with him.

Notable financial figures such as billionaire Mark Cuban and Anthony Scaramucci, a former Trump administration official, have shown interest in Musk's political movement. Musk's significant financial resources mean his involvement could impact tight electoral races in November 2024.

In summary, Elon Musk’s political move marks a significant development that has financial market implications, political intrigue involving prominent figures, and an unpredictable impact on the U.S. political landscape moving toward the midterm elections.

On July 5, 2025, American billionaire Elon Musk announced the founding of a new political entity named the "America Party" via social media. This announcement marked Musk's departure from his previous political allegiance and was made public shortly after he left his post as head of the U.S. Government Efficiency Department. Responding to queries about his changed stance toward former President Donald Trump, Musk stated that Trump's expansion of the federal fiscal deficit from $2 trillion under President Biden to $2.5 trillion would inevitably lead the United States toward bankruptcy.

Musk's criticism centered on the "Big and Beautiful" tax and spending bill steered by Trump administration officials. The controversial legislation passed narrowly in the House of Representatives on July 3 with a vote of 218 to 214 and had earlier cleared the Senate on July 1. Musk previously labeled the bill as "disgusting" and warned on social media that the U.S. Congress was pushing the country toward financial ruin by drastically increasing the already massive budget deficit, a move that would impose unbearable debt burdens on American citizens.

Originally a strong supporter of Trump, having financially backed his 2024 campaign with $280 million, Musk's relationship soured over these fiscal policies. He accused the Republican Party of mismanagement and suggested that the American political system was essentially a one-party regime dominated by vested interests. Musk’s new party aims to challenge the entrenched two-party system by targeting critical Senate and House seats, which he believes will allow the America Party to influence legislation and restore true representation for the people's will.

Musk drew a historical analogy to the ancient Battle of Leuctra, highlighting a strategy of focused, concentrated forces to overcome a dominant adversary. He also criticized the current political elite as isolated figures indulging in decadence behind closed doors, and called for a political revolution dedicated to real freedom and accountability.

The establishment of the America Party could significantly reshape U.S. politics, creating a three-way split that threatens the existing dominance of the Republican and Democratic parties. The political fallout already includes Trump's retaliation threatening audits of Musk's government subsidies and hinting at aggressive scrutiny of Musk's businesses. Musk’s move has thus ignited a major upheaval in the American political landscape, signaling a potentially dramatic realignment ahead.

Billionaire entrepreneur Elon Musk has announced the formation of a new political party in the United States named the "America Party" following a deepening conflict with former President Donald Trump. The announcement came on the weekend after Trump signed a controversial budget bill dubbed the "One Big, Beautiful Bill," which Musk criticized sharply. Musk stated that this bill would bankrupt the country and reflected what he views as a monopolistic one-party system masquerading as a democracy. His announcement followed a poll he conducted on Independence Day, which gathered over 1.2 million responses, where voters favored the creation of a new political party by a margin of 2 to 1.

Musk, who was Trump’s main campaign financier during the 2024 election and had led the Department of Government Efficiency early in Trump’s second term to reduce government spending, has since had a falling out with Trump over disagreements about the budget bill. The feud intensified publicly when Trump responded to questions about Musk with a cryptic remark suggesting deportation could be considered. Musk’s new party aims to restore freedom to the American people and challenge the existing two-party system, which he deems ineffective and wasteful. He outlined plans for the America Party to strategically target vulnerable House and Senate seats in the 2026 midterm elections, potentially positioning the party as a decisive factor in future legislative decisions.

This political development comes amid additional pressures on Musk's businesses, including Tesla’s declining global sales. The formation of the America Party signals a significant shakeup in the US political landscape, emphasizing growing dissatisfaction with the traditional parties and spotlighting Musk’s ambition to influence governance beyond his corporate enterprises.

Elon Musk, the CEO of Tesla and SpaceX, has declared that he is forming a new political party called the 'America Party.' This announcement followed a public fallout with former President Donald Trump. Musk criticized Trump's signing of a historic spending bill, labeling it as filled with 'waste & graft,' which implies misuse and corruption in government spending. This development marks a significant shift in Musk's political involvement, as he moves from being an influential figure commenting on politics to establishing a formal political entity.

The new party is expected to challenge the current political dynamics in the United States, particularly posing a threat to the Republican Party. Analysts suggest that Musk's entry into politics, especially with a platform criticizing fiscal irresponsibility, could attract voters dissatisfied with the traditional parties. The timing of Musk's announcement, right after Trump's signing of the spending bill, underscores Musk's disapproval of the current Republican leadership and policies.

Musk's America Party signals his ambition to reshape political debates around government spending and governance ethics. While specific policies and the party's full platform have not yet been detailed, Musk's high profile and business acumen position his party as a potential disruptor in the U.S. political landscape. The formation of this party may lead to new political alignments and competition ahead of future elections, impacting both Republican and Democratic strategies.

Overall, Elon Musk's move establishes him directly as a political actor willing to challenge established parties, reflecting broader tensions in U.S. politics concerning government spending and leadership.

On a Saturday in late June 2025, Elon Musk, the world's richest man and prominent entrepreneur, announced via the social media platform X that he has formed a new political entity called the 'America Party.' Musk proclaimed that the party aims to restore Americans' freedoms and respond to his followers' strong demand for an alternative political option, citing a poll where support for a new political party outpaced opposition by a two-to-one margin.

Musk outlined that the America Party could strategically focus on winning just two or three Senate seats along with eight to ten House districts. He believes that with the razor-thin margins in Congress, this approach would enable the party to hold the deciding votes on controversial legislation, thereby truly representing the will of the people. He indicated the party would caucus independently and engage in legislative negotiations with both existing major parties.

Notably, as of his announcement, Musk had not disclosed where the party is or would be officially registered, and it does not appear to be registered yet with the Federal Election Committee. If Musk actively participates in competitive congressional races in the 2026 midterm elections, his influence could significantly affect closely contested seats.

The formation of the America Party marks a sharp turn following Musk's fallout with former President Donald Trump. Initially allies during Trump's second administration, their relationship soured, particularly after Musk vocally opposed Trump's major domestic policy bill — which Musk criticized for its massive spending and record $5 trillion debt ceiling increase, calling the country a "one-party country" ruled by what he dubbed the "PORKY PIG PARTY."

Previously, Musk had been involved with efforts to reduce government size through the Department of Government Efficiency (DOGE) but stepped away after his term as a special government employee ended in May 2025. His America Party is positioned as a response to rampant government spending and a call for more fiscal responsibility and freedom. "Time for a new political party that actually cares about the people," Musk stated.

This development indicates a potentially disruptive new player in U.S. politics, one that could reshape legislative dynamics especially given the narrow congressional balance and Musk's high-profile status and resources.

Recent escalations in political conflict have unfolded between Donald Trump, former President of the United States and prominent leader within the Republican Party (GOP), and Elon Musk, billionaire entrepreneur and CEO of Tesla, who has announced plans to establish a new political party called the 'America Party.' Despite Musk’s financial capacity to fund this political endeavor, analysts and insiders suggest that his political threats lack the substantive impact due to Trump's entrenched influence and control within the GOP.

Elon Musk has indicated that his new political movement will champion a platform that includes strong support for gun rights and cryptocurrency. Specifically, he emphasized that "The Second Amendment is sacred," highlighting a pro-gun stance. However, this announcement triggered a sharp response from Trump, who criticized the initiative harshly, reportedly calling it a "train wreck." This public denouncement marks an intensification of the personal and political friction between the two figures.

In addition to the political implications, Musk’s announcement has had immediate financial repercussions, with Tesla’s stock experiencing a noticeable decline, reflecting investor concerns regarding Musk's divided focus or potential political distractions. The timing and messaging of the 'America Party' have raised questions regarding its viability and Musk's ability to shift the current U.S. political landscape dominated by the GOP under Trump's umbrella.

The significance of this event lies in the challenge it poses to the long-established Republican base, the interplay between celebrity entrepreneurship and politics, and the broad ramifications for the stability of financial markets tied to Musk’s enterprises. The ongoing developments will likely shape the discourse around political realignments in the U.S. and the role of billionaire influence in electoral politics moving forward.

On July 2, 2025, Elon Musk publicly criticized President Donald Trump's controversial "Big and Beautiful" tax reform legislation through numerous social media posts. Musk condemned lawmakers supporting the bill, stating they should feel shame for their actions. He declared that if the bill were to pass, he would establish a new political party named the 'American Party' the very next day. This bill, which raises the debt ceiling by a staggering $5 trillion, is intended to cut tax rates, reduce social safety nets, and increase funding for the military and border security, massive expenditures that could worsen the U.S. fiscal deficit. Following its passage in the House by just one vote, the Senate is currently engaged in final debates, with a vote anticipated before July 4, 2025.

Musk’s critiques highlight a growing divide within the Republican Party, leading to the announcement from two prominent Republican lawmakers that they will not seek re-election, signaling the narrowing space for dissenting views within the party. Trump's earlier comments suggest Musk's objections stem from the proposal to eliminate tax credits for electric vehicles—a direct blow to Musk's position as CEO of Tesla, which relies heavily on these incentives to sustain its market. Musk has been vocal about this issue, asserting that the proposed bill could obliterate millions of jobs while favoring outdated industries over future technologies such as clean energy. He concluded his social media statements by emphasizing the urgent need for a new political entity capable of genuinely representing the people's interests, reflecting rising discontent with the current political landscape.

On July 1, 2025, Elon Musk, CEO of Tesla, intensified his opposition to President Donald Trump's recent spending bill, which is projected to add over $3 trillion to the national debt, during an active Senate amendment session. Musk threatened to form a new political party if the bill, dubbed the "big, beautiful bill" by Trump, is passed. Following Musk's comments, Trump criticized him on social media, suggesting that Musk might receive substantial government subsidies and hinted at a reassessment of contracts with Musk's various companies. Musk also expressed strong disapproval of representatives who campaigned on fiscal responsibility yet voted for the spending increase, asserting they would risk losing their primary elections. He described the bill as "utterly insane and destructive," predicting it would lead to job losses and strategic harm to the United States. The conflict marks a significant deterioration in the previously close relationship between Musk and Trump, as Musk, known for his vocal stances on government spending, has now become a fierce critic of Trump's funding proposals. Musk's statements reflect not only personal frustrations but also signify a broader political divide, utilizing his influence to mobilize potential challengers to incumbents who support the spending bill. This developing situation is notable not only for its political intrigue but also for potential ramifications on Musk's future business dealings with the government, given Trump's warning about contracts. As the debate continues ahead of the July 4 deadline for bill passage, both Musk and Trump find their political strategies at a critical juncture, with Musk hinting that he won't back down easily as he steps into the electoral arena.

Elon Musk, the CEO of Tesla and SpaceX, publicly condemned a major domestic policy bill backed by President Donald Trump during a press event on May 30, 2025, in Washington, D.C. Musk described the Senate's massive domestic policy package as 'utterly insane' and 'destructive,' criticizing its provisions to increase taxes on clean energy projects, including solar and wind initiatives. He warned that the bill could lead to the destruction of millions of jobs and significant harm to the U.S. economy. His remarks were made just before a crucial Senate vote on the bill, which Musk claimed would prioritize subsidies for outdated industries at the expense of future-oriented sectors. He previously branded the bill a 'disgusting abomination' and expressed regret over harsh statements that had reportedly soured his relationship with Trump, with whom he previously had a close partnership. Additionally, Musk threatened to unseat Republican lawmakers who support the bill, stating that those who campaigned against government overspending yet supported the legislation would face dire consequences in their upcoming primary elections. His posts on social media have ignited discussions around potential new political movements, with Musk suggesting the creation of a party that genuinely prioritizes the public's interests. The bill is estimated to add over $3 trillion to the national debt, further complicating the fiscal landscape as lawmakers navigate its contentious reconciliation process in the Senate.

The feud between former U.S. President Donald Trump and tech billionaire Elon Musk has escalated dramatically, with Trump threatening to cut government contracts for Musk's companies, including Tesla. The conflict began when Musk publicly criticized Trump's tax spending bill, the 'One Big Beautiful Bill Act,' calling it a 'disgusting abomination' that would add $2.4 trillion to the deficit over the next decade, according to a nonpartisan Congressional Budget Office estimate. Musk stepped down from his role as a special government employee on May 28, 2025, but the feud intensified this week when Musk agreed with a social media post suggesting Trump should be impeached and replaced by Vice President JD Vance. Musk also linked Trump to the late sex offender Jeffrey Epstein in a series of posts on June 5, 2025, further inflaming tensions. Trump retaliated by threatening to withdraw subsidies for Musk's companies, which he claimed would save billions. The public spat caused Tesla's shares to plummet by 14.2% on June 5, wiping $152 billion off the company's market value, the largest single-day loss in Tesla's history. Trump accused Musk of acting out of self-interest and claimed Musk was upset about the exclusion of electric vehicle (EV) credits from the bill. Musk, in turn, asserted that Trump owed his election victory to him and criticized the administration's policies. The fallout has left Tesla's shares down nearly 18% for the week and nearly 30% for the year, far below their peak of $488.54 on December 18, 2024. The feud marks a significant rupture in the previously close relationship between Trump and Musk, with both sides exchanging sharp criticisms and threats.

Elon Musk, CEO of Tesla and SpaceX, publicly condemned President Donald Trump's massive tax and spending cut bill, calling it a 'disgusting abomination' that would 'massively increase the already gigantic budget deficit to $2.5 trillion' and burden American citizens with 'crushingly unsustainable debt.' Musk expressed his frustration in a series of posts on X, his social media platform, on May 30, 2025. He also criticized lawmakers who supported the bill, stating, 'Shame on those who voted for it: you know you did wrong.' The White House dismissed Musk's criticism, with press secretary Karoline Leavitt defending the bill as 'one big, beautiful bill' and accusing the nonpartisan Congressional Budget Office (CBO) of bias after it estimated the bill would raise the deficit by $3.8 trillion over the next decade.

The feud escalated when Trump threatened to pull government contracts from Musk's companies, leading to a $152 billion drop in Tesla's market capitalization, the largest single-day loss ever for the company. Tesla shares fell 14% on May 30, 2025, dropping below the $1 trillion benchmark to $916 billion. Trump claimed Musk was upset over the exclusion of EV credits in the bill and accused him of going 'CRAZY.' Musk retaliated by suggesting Trump's name appeared in the Jeffrey Epstein files, further intensifying the public rift.

The conflict also spilled into legislative discussions, with GOP senators debating the bill's provisions, particularly its impact on food aid spending and the farm bill. Senate Agriculture Committee staffers met with the parliamentarian to address concerns, but the timeline for finalizing the bill remained uncertain. Meanwhile, Musk's criticism marked a significant shift in his relationship with Trump, which had previously been characterized by public support, including a high-profile endorsement during the 2024 election campaign.

The conflict between former President Donald Trump and Elon Musk intensified recently, particularly following Musk's vocal criticism of Trump's latest domestic policy bill, dubbed the "big, beautiful bill." On Thursday, June 26, 2025, Trump threatened to revoke government contracts held by Musk's companies, claiming that Musk was agitated by the omission of electric vehicle (EV) credits from the spending bill. This threat resulted in a significant drop in Tesla's stock price by 14%, translating to a market cap decrease of $152 billion—the largest in the company's history—leaving Tesla valued at approximately $916 billion.

Trump expressed his surprise at Musk's reaction, stating, "I asked him to leave, I took away his EV Mandate... and he just went CRAZY!" Meanwhile, Musk retaliated on social media, asserting that he played a crucial role in Trump’s electoral victory, claiming, "Without me, Trump would have lost the election."

In recent weeks, Musk has heavily criticized the $4 trillion spending bill, arguing it could lead to economic disaster and job losses, specifically attacking the provisions targeting clean energy production. With Musk’s recent departure from the position of special government employee in Trump’s administration, he has continued to express his discontent, calling the bill "disgusting" and accusing it of undermining future industries. The ongoing spat has far-reaching implications, potentially impacting Musk's political influence and Tesla's market standing as Republican lawmakers grapple with internal divisions over the controversial bill.

In 2025, Elon Musk, CEO of Tesla and SpaceX, experienced a significant net worth decline of $26 billion, largely linked to his public feud with former U.S. President Donald Trump. The conflict has intensified throughout the year, involving multiple incidents including Trump's criticism of Musk's policies and Musk's threat to form a new political party if Republican lawmakers pass a controversial agenda bill supported by Trump. This escalating dispute has affected market confidence, as evidenced by Tesla's share price drops leading up to the delivery reports for the second quarter of 2025. The economic impact has been notable, with investor strategies cautious amid the uncertainty caused by the billionaire clash. In parallel, other billionaires have seen net worth changes; for example, Oracle founder Larry Ellison surpassed Mark Zuckerberg to become the world's second-richest person, highlighting shifting fortunes among tech magnates. Musk's net worth fluctuations and public political maneuvers underscore the intersection of business, politics, and market dynamics in the current tech and investment climate. Despite the wealth drop, Musk remains the richest person globally, emphasizing the scale of his financial footprint. The dispute with Trump also has wide social resonance, including international interest such as reactions in China and commentary on potential political realignments in the U.S. as a result of this conflict.