According to foreign media reports, Tesla CEO Elon Musk said that after disagreeing with US President Trump over a large-scale tax cut bill, he is fulfilling his promise to form a new political party and announcing the establishment of the “America Party” in response to the comprehensive bill signed by Trump.
Musk was a loyal ally of Trump and frequently appeared next to President Trump during his tenure as head of the U.S. Department of Government Efficiency. But he completely broke with the Republican president because of the “big and beautiful” bill signed by Trump on July 4.
Image source: White House official website
As the bill progressed through Congress, Musk threatened to form the “American Party” if “this crazy spending bill passed.”
Musk wrote on his social media platform X on July 5, “Waste and corruption are leading the United States to bankruptcy, and the American Party established today will be committed to returning freedom to the people.” ”
Musk also said, “The Republican Party has full control of the executive, legislative and judicial branches, but it still wantonly expands the size of the government, causing the national debt to surge by $5 trillion, a record high.” ”
In response, US President Trump called Elon Musk’s plan to form a new party “ridiculous” and said that the current two-party political system in the United States works most efficiently.
Trump told reporters, “I think it’s ridiculous to form a third party. Our Republican Party has had great success. Although the Democratic Party has lost its way, the United States has always been a two-party system, and I think the establishment of a third party will only add to the chaos. He further emphasized, “The American political system is clearly designed for a two-party system, and the third ruling party has never succeeded.” Musk can try, but the idea is ridiculous. ”
Trump also posted on his social media platform Truth Social on July 6, “It is heartbreaking to see Elon Musk completely ‘derailed’, and the past five weeks have been like a ‘train wreck’. He even wanted to form a third party, although there has never been a successful precedent in the history of the third ruling party, the United States. ”
Trump also said on the Truth Social platform, “The only ‘contribution’ of the third party is to create complete chaos, and the radical leftist Democrats have made the country chaotic enough – they have lost both confidence and reason!” Instead, the Republican Party is a smoothly functioning ‘machine’ that has just passed the largest bill of its kind in U.S. history. ”
U.S. Treasury Secretary Scott Bessent recently said on CNN’s “State of the Union” program that the boards of Musk’s companies Tesla and SpaceX may prefer him to stay away from politics. Bescent said, “I don’t think the boards of directors of these two companies will like this statement and will urge him to focus on business rather than politics.” ”
The formation of new parties is not uncommon in the United States, but new parties often struggle to capture significant popular support from Republicans and Democrats. However, Musk, the world’s richest man, is willing to invest huge sums of money that could affect the 2026 election that will determine control of Congress, and he has spent at least $250 million to support Trump in the 2024 US election.
However, Musk’s renewed confrontation with Trump could also cost Musk: his companies rely on billions of dollars in government contracts, and the market value of listed company Tesla has been impacted by Musk’s involvement in politics.