WASHINGTON: Elon Musk has announced the formation of a new political group named the America Party, marking a significant development in his evolving relationship with current US political leadership. The move comes shortly after former US President Donald Trump signed a new tax-cut and spending bill, which Musk criticised for potentially increasing the national deficit.
In a post on his platform X, Musk said, “Today, the America Party is formed to give you back your freedom.” The announcement followed a public poll he conducted asking users whether a new political party should be created—resulting in a two-to-one approval.
Musk, widely recognised for his leadership of Tesla and SpaceX, had been a major financial supporter during Trump’s previous campaign and briefly served as the head of the Department of Government Efficiency. However, he has since voiced concerns about rising government expenditure and warned that recent fiscal policies could lead to long-term economic challenges.
Investor reaction to Musk’s announcement was swift. Azoria Partners, a financial firm, postponed the launch of a Tesla-related exchange-traded fund. James Fishback, CEO of Azoria, posted on X, urging Tesla’s board to clarify Musk’s future political involvement and its possible effects on company direction.
Musk stated earlier that he intended to fund campaigns against lawmakers who supported the new spending bill. In response, some political analysts have expressed concern over how this emerging political rift may affect party unity ahead of the 2026 midterm elections.
Asked what prompted his shift in political stance, Musk said the growing national deficit—estimated to reach USD 2.5 trillion—was a key factor.
While there has been no official response from Trump or the White House, analysts note that Musk’s entry into political party formation could signal a broader push toward reshaping traditional American party dynamics. Despite this, experts also highlight the considerable challenges of disrupting a two-party system that has endured for more than a century and a half.
