Elon Musk Breaks With MAGA Movement, Launches "America Party”

Elon Musk has officially announced the formation of a new political party, the "America Party," on July 5th, posting on X, “By a factor of 2 to 1, you want a new political party and you shall have it! Today, the America Party is formed to give you back your freedom." 

The “America Party” is Musk’s response to President Trump signing the One Big Beautiful Bill on Independence Day, of which Musk has been extremely critical—to the point of destroying his relationship with the President. Musk went as far as to commentate: “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.”

Elon Musk’s Unclear Party

Despite being one of Trump’s closest allies during his 2024 presidential campaign, donating nearly 300 million dollars to support Republican candidates, Musk is now dividing the party. While the core values remain undefined, the main policy will be to reduce spending in line with Musk’s previous role in DOGE and criticism of the Big Beautiful Bill. 

However, running a party on a single issue is unrealistic regardless of the amount of wealth that Musk is willing to pump into the party. There has been speculation that Musk will potentially focus on other issues, particularly the deregulation of AI and protecting free speech, however these have yet to be fully pushed forward as key points for the party. 

However, Musk has made indications on X that his policies will largely cater towards Republicans and those that are right leaning as he has suggested that the party will take a pro-gun position and deregulating business.

There is also confusion among voters about who Musk is planning to push forward as potential candidates. This comes at a time when people are concerned about the party becoming extremely far right, especially when it was revealed that Musk had gone to Curtis Yarvin, a far right advocate for a dictatorship style American government, as a consultant in the creation of the America Party. 

Problems with 3rd Parties or Elon Musk?

Despite popular support for a third party, Musk may face issues with garnering support for his America Party, especially if trying to gain support from the right. This is because of the popularity and loyalty that Republicans have for President Trump. On top of that, Musk is becoming increasingly unpopular. Among independents, Musk’s favorability fell from 42% in December to 27% in June. Even among Republicans, Musk’s favorability saw a hit after challenging Trump from 83% favorable in December to 67% in June. 

This reveals how even though the America Party may broadly have policies that are popular among Republican voters, the problem may be with Musk himself. As Treasury Secretary Scott Bessent said in an interview with CNN: “Look, the principles of DOGE were very popular. I think if you looked at the polling, Elon was not.”

President Trump Responds

In response to Musk’s threats and creation of the America Party, President Trump has been vocal in his disapproval. When asked about the America Party, President Trump replied, “It's always been a two-party system and I think starting a third party just adds to the confusion.” Later, Trump posted on Truth Social: “I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a train wreck over the past five weeks.”

And President Trump wasn’t the only person to think that Musk is going off the rails, as Tesla stocks dropped around 7% after Musk announced the creation of the America party. Wedbush analyst Dan Ives summarizes the sentiment of investors when he writes: “Very simply Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take.”