Elon Musk announces new 'America Party' after Trump's massive spending bill becomes law
A day after asking his followers on his X platform whether a new U.S. political party should be created, Musk declared in a post on Saturday: "Today, the America Party is formed to give you back your freedom."
"By a factor of 2 to 1, you want a new political party and you shall have it!" he wrote.
The announcement from Musk comes after Trump signed his self-styled "big, beautiful" tax-cut and spending bill into law on Friday, which Musk fiercely opposed.
WATCH | What drove a wedge between Trump and Musk:
Will Donald Trump and Elon Musk destroy each other?
25 days ago
Duration 25:36
Musk, who became the word's richest man thanks to his Tesla car company and his SpaceX satellite firm, spent hundreds of millions on Trump's re-election and led the Department of Government Efficiency, aimed at slashing government spending, from the start of the president's second term.
The first sign of investor dissatisfaction with Musk's announcement followed later in the day. Investment firm Azoria Partners will postpone the listing of a Tesla exchange-traded fund, Azoria CEO James Fishback said in a post on X.
Fishback is asking Tesla's board to clarify Musk's political ambitions and said the new party undermines the confidence shareholders had that he would be focusing more on the company after leaving government service in May.
Musk said previously that he would start a new political party and spend money to unseat lawmakers who supported the bill.
Trump earlier this week threatened to cut off the billions of dollars in subsidies that Musk's companies receive from the federal government.
Republicans have expressed concern that Musk's on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.
Asked on X what was the one thing that made him go from loving Trump to attacking him, Musk said: "Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country."
There was no immediate comment from Trump or the White House on Musk's announcement.
The feud with Trump, often described as one between the world's richest man and the world's most powerful, has led to several precipitous falls in Tesla's share price.
The stock soared after Trump's November re-election and hit a high of more than $488 US in December, before losing more than half of its value in April and closing out last week at $315.35 US.
Despite Musk's deep pockets, breaking the Republican-Democratic duopoly will be a tall order, given that it has dominated American political life for more than 160 years, while Trump's approval ratings in polls in his second term have generally held firm above 40 per cent, despite often divisive policies.
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