Elon Musk announces the creation of a new political party in the United States called the America Party. This party aims to challenge the established two-party system and restore individual freedom. Musk’s move follows a public fallout with President Donald Trump over recent government spending policies.
What’s Happening & Why This Matters
On his social media platform X, Musk revealed he founded the America Party to “give you back your freedom.” He emphasizes the party will oppose both Republicans and Democrats, calling the current system a “one-party system, not a democracy.” Although it’s unclear whether the party is formally registered, Musk plans a full launch for next year. This announcement follows a July 4 poll in which Musk asked his followers if he should start a new party. Two-thirds supported the idea. Musk’s party intends to focus on fiscal responsibility and limiting government waste.
Initially, Musk backed Trump’s 2024 bid, donating $277 million and serving in the Department of Government Efficiency (DOGE), which cut government jobs and programs. Trump praised Musk as a top innovator.
However, their relationship soured over the “One Big Beautiful Bill Act,” a massive tax-cut and spending bill signed by Trump on 04 July 2025. Musk called it a “disgusting abomination” that balloons the budget deficit and burdens Americans with debt.
Trump retaliated by threatening to cut federal subsidies for Musk’s companies, even joking about deporting him despite Musk’s U.S. citizenship since 2002. Trump said Musk might have to “close up shop and head to South Africa.”
From Sunday to Monday, Tesla’s stock plunged 7.13% in premarket trading following the party announcement. Analysts warned that investors want Musk to focus on Tesla’s business rather than politics. Dan Ives of Wedbush Securities said investors feel “exhausted” by Musk’s political dives.
Adding to Tesla’s pressure, Q2 2025 vehicle deliveries dropped 14% year-over-year. Competition in China and other markets intensifies as Musk juggles business challenges and political activism.
TF Summary: What’s Next
Musk’s America Party launch shakes up U.S. politics while rattling Tesla investors and Musk disciples. The party challenges the two-party dominance and emphasizes freedom and fiscal discipline. How the party develops depends on registration, fundraising, and voter support. Meanwhile, Tesla, a public company, needs to manage market pressures amid Musk’s political spotlight.
Musk’s ongoing political engagement extends the tech leaders’ trend: treading into government & politics. This approach may inspire new political movements seeking to restore freedoms and reduce waste.
— Text-to-Speech (TTS) provided by gspeech