Elon Musk, the mercurial billionaire behind Tesla and SpaceX, has ignited a political firestorm by announcing the creation of the "America Party" on July 6, 2025.

The declaration, made via his X social network, came just a day after Donald Trump signed the big beautiful spending bill into law. "You want a new political party and you shall have it!" Musk proclaimed, citing a poll on X where 65% of respondents backed the idea. The move marks a dramatic escalation in Musk’s feud with Trump, following his abrupt departure from the administration’s Department of Government Efficiency in May.

The bill, which also hikes the federal debt ceiling by $5 trillion, has been a lightning rod for Musk’s ire. He’s called it "insane," arguing it dishes out "handouts to industries of the past while severely damaging industries of the future." For Tesla, the loss of the EV tax credit—effective after September 30, 2025—threatens to widen the price gap between electric and gas-powered cars, a gap that averages $9,000 according to Kelley Blue Book. Musk’s response? A new party to challenge the status quo.

Why Did Musk Do It?

Musk’s leap into party politics isn’t just a tantrum over a single bill—it’s a calculated strike against a system he views as broken.

The EV tax credit’s demise hits Tesla hard, potentially crimping sales as EVs become less affordable for middle- and lower-income buyers. Ingrid Malmgren of Plug In America warns that without incentives, "they will become unaffordable to many," a blow to an industry Musk has staked his legacy on. But his grievances run deeper. Musk has railed against the bill’s $3.3 trillion debt increase and what he sees as wasteful spending, accusing the two-party system—or "uniparty"—of bankrupting the nation with "waste & graft."

This isn’t Musk’s first political rodeo. He poured $277 million into Trump’s 2024 campaign, only to sour on the president when the budget bill surfaced. His tenure leading the Department of Government Efficiency, which he claimed saved $190 billion (though critics peg losses at $135 billion), showcased his appetite for disruption. Now, with the America Party, Musk is betting he can channel that energy into a broader movement, fueled by his wealth and a populist streak that resonates with voters fed up with Washington’s gridlock.

Trump Derides Musk’s Plan as Doomed

Trump isn’t buying it. "Third parties have never worked, so he can have fun with it, but I think it’s ridiculous," the president told reporters on July 7, 2025. On Truth Social, he doubled down, lamenting watching Musk go "completely ‘off the rails’" and touting the bill that "unfortunately for Elon" kills the EV subsidy. Treasury Secretary Scott Bessent piled on, urging Musk to stick to business: "The boards of directors at his various companies… will be encouraging him to focus on his business activities, not his political activities."

The skepticism isn’t unfounded. Launching a third party is a Herculean task. To gain ballot access in a state like California, Musk would need signatures from 1.1 million voters or 0.33% of the state’s electorate as party members. At the federal level, the Federal Election Commission (FEC) demands recognition—a process FEC Commissioner Lee E. Goodman says requires "thousands of donors" and faces fierce pushback from both Republicans and Democrats. Musk hasn’t filed paperwork yet, leaving the party’s logistics murky.

A Laser-Focused Strategy

Undeterred, Musk has a plan: target a handful of pivotal congressional seats. "Laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts," he wrote on X, noting that with today’s razor-thin legislative margins, a small bloc could "serve as the deciding vote on contentious laws." It’s a shrewd play—mirroring the bill’s own narrow passage (218-214 in the House, 51-50 in the Senate with JD Vance breaking the tie). Musk hasn’t named targets, but he’s eyeing the 2026 midterms as the party’s debut.

The pitch? Independence from a "uniparty" that’s lost its way. On Independence Day 2025, Musk polled his 1.25 million X followers, with over 65% cheering the idea. "When it comes to bankrupting our country… we live in a one-party system, not a democracy," he argued, reposting a two-headed snake image labeled "uniparty" with Democratic and Republican logos. "End the Uniparty," he echoed.

High Stakes, Higher Risks

Musk’s gambit is neither cheap nor safe. Trump has hinted at retaliation, musing about deporting the South Africa-born billionaire (a U.S. citizen since 2002) and slashing government contracts for Tesla and SpaceX. “Without subsidies, Elon would probably have to close up shop and head to South Africa,” Trump jabbed.

The economic stakes are real: Tesla’s growth could stall without EV incentives, and SpaceX’s federal ties could fray.

The U.S. Air Force has already taken a significant step in this direction: according to report, it has suspended a SpaceX project to test hypersonic rocket cargo deliveries from Johnston Atoll, an unincorporated U.S. territory 800 miles southwest of Hawaii. The program, designed to deliver up to 100 tons of cargo anywhere on Earth in 90 minutes, was halted after environmental concerns emerged over its impact on the atoll’s 14 species of nesting seabirds, part of the Pacific Remote Islands Marine National Monument. This echoes a prior incident in Texas, where a SpaceX Starship launch destroyed plover nests, leading to legal repercussions.

While the suspension’s direct tie to the America Party is uncertain, the timing fuels speculation that the U.S. government is prepared to target Musk’s corporate empire in response to his political moves.

Yet the potential payoff could be seismic. A successful America Party might not just sway votes—it could rewrite the rules of American politics, forcing both major parties to reckon with a new player. For now, Musk’s vision is a bold sketch: a party born of frustration, bankrolled by billions, and aimed at a nation hungry for change. Whether it’s a masterstroke or a mirage depends on execution—and the electorate’s mood in 2026.