WASHINGTON — The uneasy alliance between Elon Musk and Donald Trump has officially ruptured. On Saturday, Musk announced the formation of the “America Party,” signaling a dramatic political shift and open rebellion against the former president he once championed, reported by Arab News.
“Today, the America Party is formed to give you back your freedom,” Musk declared on his social media platform X, just a day after Trump signed his new tax and spending bill into law. “By a factor of 2 to 1, you want a new political party — and you shall have it.”
Musk, once a top donor and head of Trump’s Department of Government Efficiency, denounced the bill as fiscally catastrophic. “Increasing the deficit from an already insane $2 trillion under Biden to $2.5 trillion will bankrupt the country,” he wrote.
The fallout was swift. Investment firm Azoria Partners postponed a Tesla-focused exchange-traded fund, citing uncertainty over Musk’s political ambitions. Azoria’s CEO urged Tesla’s board to address concerns that Musk is distracted from his corporate responsibilities.
Trump, who recently threatened to cut federal subsidies to Musk’s companies, has not publicly responded. But GOP insiders worry the feud could fracture their base ahead of the 2026 midterms.
Tesla shares, once buoyed by Musk’s close ties to Trump’s administration, have been volatile. After peaking at over $488 in December, the stock closed last week at $315.35, a sharp decline fueled in part by Musk’s public clashes with the White House.
While third parties face steep odds in U.S. politics, Musk’s money, influence, and media megaphone pose a wildcard few are willing to ignore. The battle lines are drawn: the world’s richest man versus the world’s most powerful — with America watching closely.
