Ismail Abdulazeez Mantu Reporting
The political alliance between Republican President Donald Trump and his billionaire campaign patron Elon Musk has dramatically imploded, culminating in Musk’s bombshell announcement on Saturday of a new political movement — the America Party — aimed at reclaiming what he calls the “freedom and fiscal sanity” lost under Trump’s leadership.
“Today, the America Party is formed to give you back your freedom!” Musk declared on his X platform, formerly Twitter. His post followed a viral poll asking whether a new political party should be created — with the tech mogul claiming a 2-to-1 response in favor.
This unprecedented political rupture came just one day after Trump signed his controversial “big, beautiful” tax and spending bill into law, a move Musk harshly criticized. “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country,” Musk posted when asked what triggered his break from the president he once praised.
The fallout has been swift and far-reaching. Investment giant Azoria Partners announced it was delaying the launch of a Tesla exchange-traded fund, with CEO James Fishback demanding clarity from Tesla’s board over Musk’s political ambitions. “Shareholders were assured Musk would refocus on Tesla after leaving government service. This new party undermines that confidence,” Fishback said.
Musk, who amassed immense wealth through Tesla and SpaceX, played a pivotal role in Trump’s reelection campaign and served as the inaugural head of the Department of Government Efficiency during Trump’s second term. However, his opposition to Trump’s deficit-expanding fiscal policy appears to have fractured what was once a powerful alliance between two of the world’s most influential figures.
Trump, who has not yet issued a formal response to Musk’s rebellion, reportedly warned last week that he would consider cutting billions in federal subsidies benefiting Musk’s companies.
Political analysts are already speculating on the potential fallout for the Republican Party ahead of the crucial 2026 midterm elections, with fears that Musk’s insurgent movement could siphon off disaffected conservatives and independents. “The GOP can’t afford a split. Musk may not win, but he can spoil,” said one senior Republican strategist who requested anonymity.
Tesla’s stock has also been caught in the crossfire. After soaring to $488 following Trump’s reelection in November, shares plummeted to $315.35 by last Friday, wiping out billions in market value amid concerns over Musk’s growing political distractions.
Despite Musk’s wealth and influence, breaking the entrenched Republican-Democratic grip on American politics remains a herculean task. Yet his deep-pocketed declaration of war against Trump signals that the 2026 and 2028 elections could be unlike anything in recent American history.