Post by : Minna

Photo: Reuters

Elon Musk, one of the richest people in the world, has announced that he is creating a new political party called the America Party. This decision comes after a serious disagreement with United States President Donald Trump over a new tax and spending law.

Why Did Musk and Trump Disagree?

Elon Musk was once a close friend and supporter of President Trump. In the past, Musk even led a government department called the Department of Government Efficiency, where he worked to reduce wasteful spending and make the government work faster. But everything changed when President Trump signed a new law on Friday that included large tax cuts and heavy spending cuts, which Musk strongly opposed.

When this bill was moving through Congress, Musk warned that he would create a new political party if the “insane spending bill” became law. On Saturday, Musk kept his promise and said:

“When it comes to bankrupting our country with waste and corruption, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom.”

Trump’s Reaction to Musk’s Decision

When reporters asked President Trump about Musk’s announcement on Sunday, he called it “ridiculous”. Trump said he was doing very well with the Republican Party and did not see any need for a third party. He added that the Democrats had lost their way, but America had always been a two-party system, and starting a third party would only add confusion. According to Trump, three parties have never worked in the US system.

Can Musk’s New Party Succeed?

In America, new political parties are often formed but they usually do not become powerful enough to challenge the Republican and Democratic parties. However, some experts believe that Musk, who is the world’s richest man, could make a difference if he uses his money for his new party. During the 2024 elections, Musk spent around $250 million supporting Trump. If he spends similar or larger amounts on his party in the 2026 elections, it could change the results, especially in Congress.

Risks for Musk’s Businesses

This new fight with President Trump could create problems for Musk’s companies. Tesla, which makes electric cars, and SpaceX, which builds rockets, receive billions of dollars in government contracts. If Musk continues to argue with Trump and other leaders, these contracts might be affected. Tesla’s share price has already fallen since he announced the creation of the America Party.

Is the America Party Officially Registered?

So far, it is not clear if Musk has officially registered the America Party with the Federal Election Commission. On Sunday morning, there were many new parties listed in the database with names like “America Party,” “DOGE,” or “X,” but most of them seemed fake. They used untraceable Protonmail addresses, which could not be verified. Musk’s team and his political action committee, America PAC, have not given any official comment yet.

Musk Seeks Public Support for His Party

On Sunday, Elon Musk spent time asking his followers for their suggestions and feedback about the America Party. He also said that he plans to use the party to take part in the 2026 midterm elections.

Musk’s Anger Over Trump’s Spending Bill

Last month, Musk warned that he would try to remove every member of Congress who voted for Trump’s bill. He called the tax and spending package a “disgusting abomination,” saying it would increase the country’s debt by a huge amount. On Sunday, Musk said:

“The Republican Party has control of the executive, legislative, and judicial branches, and still they increased the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS.”

This is surprising because just a few months ago in May, Musk said he would spend “a lot less” on politics in the future and focus more on his businesses like Tesla and SpaceX.

Government Leaders React to Musk’s Move

The US Treasury Secretary, Scott Bessent, who used to argue with Musk when he ran the Department of Government Efficiency, said that although Musk’s ideas were popular, the people did not support him as much. He said that the board of directors of Musk’s companies probably did not like his political announcement and would encourage him to focus more on his business activities rather than politics.

What Happens Next?

It is yet to be seen whether Musk’s new America Party will become a real force in US politics or if it will remain just an announcement. But one thing is clear – the relationship between Donald Trump and Elon Musk, once close allies, has now turned into a major political rivalry.

Musk forms America Party