Elon Musk has officially launched a new political movement called the “America Party,” marking a dramatic break from U.S. President Donald Trump. Musk announced the move on his social platform X, declaring the new party aims to “give you back your freedom.” The billionaire made the announcement just a day after criticizing Trump’s newly signed tax and spending bill.
Musk, who was once a key financial supporter of Trump’s re-election, had openly opposed the bill, warning it would deepen the national deficit. He said the legislation, described by Trump as “big and beautiful,” would drive America toward bankruptcy. His frustration with both major parties led him to call the current system a “one-party state fueled by waste and corruption.”
Tensions between the two powerful figures have been rising for months. Musk, who previously led the Department of Government Efficiency under Trump, said he would spend heavily to unseat lawmakers who supported the bill. In response, Trump threatened to cut off federal subsidies to Musk’s companies, including Tesla and SpaceX.
Despite his massive financial influence, Musk faces a tough challenge in trying to disrupt the long-standing Republican and Democratic hold on U.S. politics. Still, he remains confident, comparing his strategy to the ancient Greek general Epaminondas, who defeated Sparta using focused force at a key moment. Musk promised to apply a similar method in American politics.
Meanwhile, the public feud has taken a toll on Tesla’s stock, which soared after Trump’s re-election but fell sharply after the rift became public. After hitting a high of $488 in December, Tesla shares dropped over 50% by April, ending last week at $315.35. Investors have expressed concern about the political battle’s effect on Musk’s business empire.
Even as Musk positions the America Party as a fresh alternative, Trump continues to hold strong approval ratings above 40%. With the 2026 midterm elections approaching, political analysts say the Musk-Trump divide could reshape U.S. politics — or splinter the conservative vote at a critical time.