Tech billionaire and Tesla CEO Elon Musk, who once supported US President Donald Trump, has now taken a dramatic turn in US politics. On Saturday, July 5, 2025, Musk revealed that he has launched a new political party to challenge the country’s long-standing two-party system.

Why Musk Created the America Party

This decision follows a recent fallout between Musk and Trump. Musk, who previously served as the head of the Department of Government Efficiency (DOGE), was leading Republican efforts to cut federal spending and reduce government jobs. But tensions rose after Trump signed a controversial tax-cut and spending bill into law—something Musk had openly opposed.

Reacting to this, Musk posted on X (formerly Twitter), the social media platform he owns, “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom.”

Independence Day Poll Sparks Action

Just a day before the announcement, on US Independence Day (July 4), Musk shared a poll on X, asking people if they wanted “independence from the two-party (some would say uniparty) system.” Over 1.2 million people responded to the simple yes-or-no question.

Through this post, Musk expressed his dissatisfaction with both major political parties — the Democrats and Republicans — accusing them of running the country inefficiently. He repeated, “When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy.”

A Growing Dispute with Donald Trump

The rift between Musk and Trump grew sharper after the president signed what he proudly called the “Big Beautiful Bill,” a tax and spending law that Musk strongly opposed. Musk believed the bill would:

• Reduce subsidies for electric vehicles, affecting Tesla

• Cause SpaceX to lose government contracts

• Harm his broader business interests

Earlier, Musk had warned that he might start a political party if the bill made it through Congress. True to his word, after the bill was passed, he announced the formation of the America Party.

What We Know (and Don’t Know) About the New Party

So far, Musk has not shared any official details about:

• Whether the America Party has been legally registered

• Who would be in leadership roles

• What the party’s platform or structure will be

His announcement came without a press conference or formal launch plan. Instead, it was made entirely online through posts and polls on X.

Trump's Response and Threats

Earlier in the week, Trump reportedly threatened to cut off federal subsidies to Musk’s companies — including Tesla and SpaceX. This came amid increasing public tension between the two men, once considered political allies.