Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, has announced the formation of a new political entity in the United States, named the “America Party.” This move marks a significant departure from his previous alliance with President Donald Trump, following the enactment of the controversial “One Big Beautiful Bill” (OBBBA) on July 4, 2025.
The OBBBA, signed by President Trump, is a sweeping tax-cut and spending package that Musk argues will substantially increase the national deficit and potentially bankrupt the country. Musk’s opposition to the bill intensified after it removed tax credits for electric vehicles, a measure he contends will lead to significant job losses in the green energy sector.
In response to the bill’s passage, Musk conducted a poll on his social media platform, X, asking his followers if they supported the creation of a new political party. The poll received over 1.2 million responses, with approximately 80% in favor of the initiative. Musk interpreted this overwhelming support as a mandate to establish the America Party, stating, “By a factor of 2 to 1, you want a new political party and you shall have it!”
The America Party aims to challenge what Musk describes as the entrenched “one-party system” in U.S. politics. He envisions the party focusing on influencing a select number of closely contested Senate and House races in the upcoming 2026 elections, with the goal of serving as a decisive force on contentious legislation. Musk has not yet disclosed specific candidates or districts but has expressed intentions to unseat lawmakers who supported the OBBBA.
This development has already begun to impact investor confidence. Azoria Partners, an investment firm, announced the postponement of its Tesla exchange-traded fund (ETF) following Musk’s political announcement. Azoria CEO James Fishback, a known supporter of President Trump, criticized Musk’s political move and questioned whether his new political ventures could conflict with his responsibilities as Tesla’s CEO. He urged Tesla’s board to clarify Musk’s political intentions and assess their compatibility with his corporate leadership.
Musk’s decision to form the America Party underscores the deepening rift between him and President Trump. Once a close ally and major campaign financier for Trump, Musk’s opposition to the OBBBA and his subsequent political move signal a significant shift in the political landscape. The success of the America Party will depend on its ability to navigate the complexities of the U.S. political system and gain traction among voters disillusioned with the current two-party dominance.
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