Elon Musk Announces Formation of 'America Party' in Response to Trump

According to foreign media reports, Tesla CEO Elon Musk has announced the formation of a new political party called the 'America Party' in response to President Trump's extensive tax reform law, with which he has had significant disagreements. Musk, once a close ally of Trump and head of the Department of Government Efficiency, has completely severed ties with the Republican president after the signing of the 'Big and Beautiful' act on July 4. As the legislation progressed through Congress, Musk had threatened to form the 'America Party' if this 'crazy spending bill' passed. On July 5, he wrote on his social media platform X, 'Waste and corruption are driving America towards bankruptcy. The America Party, established today, will work to restore freedom to the people.' Musk criticized the Republican Party for expanding government size, which led to a historic rise in national debt by $5 trillion. In response, President Trump characterized Musk's plan to create a new party as 'absurd and laughable,' asserting that the current two-party system in America operates most efficiently. Trump stated to reporters, 'I think forming a third party is ridiculous. Our Republican Party has achieved tremendous success. The Democrats may have lost their way, but America is fundamentally a two-party system. I believe creating a third party will only add to the chaos.' He emphasized, 'The American political system is clearly designed as a two-party system, and no third party has ever succeeded. Musk can try, but the idea is indeed absurd.' On July 6, Trump further commented on his social media platform Truth Social, expressing his dismay at Musk's actions, likening the past five weeks to a 'train wreck.' He noted Musk's desire to form a third party, despite the lack of historical success for third parties in America. Trump claimed, 'The only 'contribution' of a third party is to create utter chaos, and the radical left Democrats have already made the country chaotic enough—they have lost both confidence and sanity! In contrast, the Republican Party is a smoothly running 'machine' that has just passed the largest piece of legislation of its kind in American history.' Scott Bessent, the U.S. Treasury Secretary, recently mentioned on CNN's 'State of the Union' program that the boards of Musk's companies, Tesla and SpaceX, might prefer him to stay away from politics. Bessent stated, 'I think the boards of those two companies would not appreciate this announcement and would urge him to focus on business rather than political activities.' While forming a new party is not uncommon in the U.S., new parties typically struggle to gain substantial public support from the Republican and Democratic parties. However, as the world's richest person, Musk could potentially impact the elections in 2026, which will determine control of Congress, especially given his previous $250 million investment in support of Trump during the 2024 presidential election. Nevertheless, Musk's renewed opposition to Trump could come at a cost, as his companies rely on billions of dollars in government contracts, and Tesla’s market value has already been affected by Musk's political involvement.