Elon Musk Launches “America Party” – From Trump’s Kingmaker to Political Rebel
Elon Musk announced the formation of his new “America Party” in July 2025 following escalating conflicts with President Trump. Analyze Musk’s political transformation from kingmaker to rebel and its implications for 2026 midterms.
Key Takeaways
Introduction: From Alliance to Rivalry
Musk has officially announced the formation of his new party, the “America Party,” through his Twitter X platform. Just months ago, Elon Musk was considered President Trump’s closest ally and kingmaker. Now, he’s transformed into a political rebel.
Why did Musk, who played a decisive role in Trump’s 2024 election victory, suddenly choose the extreme option of forming a new political party? Let’s examine the background and implications of this stunning political reversal.
The Root of Conflict: Tax Cut Legislation Dispute
Trump’s Tax Cut Bill Details
President Donald Trump’s tax cut legislation, known as the “One Big Beautiful Bill Act,” barely passed the Senate but faces renewed challenges ahead of the final House vote. The bill, which significantly reduces electric vehicle subsidies and is projected to substantially increase the federal deficit, has reignited fierce opposition from Tesla CEO Elon Musk.
Musk’s Strong Opposition
Musk strongly opposed this bill, arguing it would significantly worsen America’s fiscal deficit. The reduction in electric vehicle subsidies was particularly concerning as it could directly impact his Tesla business operations.
Details of the New Party Announcement
Official Launch of “America Party”
On July 5th (local time), Elon Musk, Tesla’s CEO who has been in conflict with President Trump over tax cut legislation, announced the formation of a new political party. He threw down the gauntlet to the Republican-Democratic two-party system with his third party, the “America Party.”
Musk revealed his intention to form the new party on X (formerly Twitter) with the question, “Do you want a new political party?”
2026 Midterm Election Strategy
His new party formation is interpreted as a strategic move targeting the midterm elections. The strategy appears to be capturing moderate and independent voters to become the decisive “swing vote” in Congress as a third party. Musk’s new party vision represents an ambitious plan to absorb “anti-Trump, non-Democratic support” in next November’s midterm elections to become a “key force” as a “third party.”
Trump’s Counterattack
Strong Warning and Deportation Threats
On the 1st (local time), President Trump expressed his displeasure through social media, stating, “Elon (Musk) has received more support than any president in history.”
Previously, Musk had strongly opposed Trump’s tax cut bill, even mentioning new party formation, arguing it would significantly worsen the government’s fiscal deficit. Trump has escalated to full confrontation, even mentioning the possibility of Musk’s deportation.
Threats to Cut Business Subsidies
In response, Trump is countering with threats to cut subsidies to Tesla, SpaceX, and other affiliated companies. This represents a powerful pressure tactic that could deal a fatal blow to Musk’s business empire.
Market Response and Economic Impact
Tesla Stock “Owner Risk” Concerns
As Musk declared his transformation from Trump’s kingmaker to rebel, “Tesla owner risk” concerns are being raised on the New York Stock Exchange. Investors are worried about the impact of Musk’s political moves on Tesla, SpaceX, and his other businesses.
High Government Support Dependency
Musk’s major businesses, Tesla and SpaceX, depend significantly on government subsidies and contracts. Conflict with the Trump administration could pose a direct threat to this support system.
Political Significance and Outlook
Potential Changes in American Political Landscape
Conversely, President Trump faces virtually no political losses from his conflict with Musk. Given Trump’s style of relentlessly pursuing opponents who don’t capitulate, there’s considerable possibility he’ll continue to pressure Musk.
Realistic Prospects as a Third Party
Third parties have rarely achieved meaningful success in American political history. However, if Musk’s massive capital resources and social media influence combine with public fatigue toward existing two-party politics, it could become a new variable.
Uncertain Future and Key Points to Watch
Elon Musk’s new party formation announcement is not merely a political show but a significant event that could shake up the American political landscape. Key points to watch include how the conflict with Trump will unfold and whether the “America Party” can actually grow into a meaningful political force.
The 2026 midterm elections will serve as the first testing ground for Musk’s political ambitions. Can the world’s richest man and technology innovator succeed in the political arena as well?
