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Elon Musk spent $290 million helping Trump win, then watched him sign a $3.3 trillion spending bill. Now the world's richest man is starting his own political party to challenge both Republicans and Democrats in 2026.
💡 TL;DR - The 30 Seconds Version
👉 Elon Musk announced the America Party on Saturday after his $290 million alliance with Trump collapsed over the president's $3.3 trillion spending bill.
📊 Musk became the largest individual political donor in US history, spending $277-290 million to help Trump win the 2024 election.
💰 Trump's "big, beautiful bill" adds $3.3 trillion to the federal deficit over 10 years, triggering Musk's threat to start a third party.
🎯 The America Party will target 2-3 Senate seats and 8-10 House districts in 2026 to create a swing bloc in Congress.
📉 Tesla stock fell from $488 in December to $315 last week as the Musk-Trump feud intensified and investors grew concerned.
🚀 40% of voters would consider a Musk-backed party, suggesting the first billionaire with enough resources to challenge the two-party system.
Elon Musk announced Saturday he's starting a new political party after his spectacular falling-out with Donald Trump. The billionaire declared the formation of the "America Party" on X, saying "Today, the America Party is formed to give you back your freedom."
The move caps weeks of bitter feuding between Trump and his former "first buddy" over the president's massive spending bill. Musk, who spent nearly $300 million helping Trump win in 2024, had warned he would start a third party if Congress passed what he called an "insane spending bill." Trump signed it into law Friday.
Musk's announcement followed a poll on X where 65.4% of 1.25 million respondents said they wanted a new political party. The timing was hardly subtle. One day after Trump's "big, beautiful bill" became law, Musk delivered on his threat.
Trump responded with characteristic diplomacy. "I think it's ridiculous to start a third party," he told reporters Sunday. "Third parties have never worked, so he can have fun with it, but I think it's ridiculous."
On Truth Social, Trump escalated further. "I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a TRAIN WRECK over the past five weeks," the president wrote. He accused Musk of wanting to start a party that would create "Complete and Total DISRUPTION & CHAOS."
Trump also revealed why their relationship soured. The president said he had always planned to eliminate electric vehicle subsidies and asked Musk about it during the campaign. "He said he had no problems with that," Trump claimed.
This represents one of the most expensive political divorces in American history. Musk didn't just support Trump with money - he danced at rallies, brought his four-year-old son to the Oval Office, and became the unofficial head of government efficiency.
Tesla's stock price tells the story of their deteriorating relationship. After soaring to over $488 in December following Trump's victory, it lost more than half its value and closed last week at $315.35.
The feud intensified when Trump threatened to cut billions in subsidies to Musk's companies and suggested the Department of Government Efficiency might "take a good, hard look" at Musk's contracts. Trump even mused about deportation, telling reporters he might have to "take a look" at sending the South African-born billionaire home.
Musk faces the brutal math that has crushed every third-party effort in modern American politics. Ross Perot won nearly a fifth of the popular vote in 1992 but carried no states. The two-party system has dominated for over 160 years for structural reasons that even $300 billion can't easily overcome.
Musk acknowledges the challenge, planning to "laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts" rather than attempt a full national campaign. The strategy aims to create a swing bloc powerful enough to hold the balance of power in Congress.
Early polling suggests Musk might have more support than typical third-party efforts. A Quantus Insights survey found 40% of registered voters would consider supporting a Musk-backed party over traditional Republican or Democratic candidates.
The political adventure is already costing Musk financially. Investment firm Azoria Partners postponed the listing of a Tesla exchange-traded fund, with CEO James Fishback asking Tesla's board to clarify whether Musk's political ambitions conflict with his CEO duties.
Treasury Secretary Scott Bessent said on CNN that DOGE's principles were popular but "if you look at the polling, Elon was not." He predicted Tesla's board would encourage Musk "to focus on his business activities, not his political activities."
The criticism reflects broader investor concerns about Musk's divided attention. Musk had promised Tesla shareholders his government work would "drop significantly" and said he would "do a lot less" political spending moving forward. The America Party suggests those promises had a short shelf life.
Musk's core complaint centers on Trump's bill adding an estimated $3.3 trillion to the federal deficit over the next decade. For someone who made his name slashing government waste through DOGE, watching Trump sign massive spending increases proved too much.
"The Republican Party has a clean sweep of the executive, legislative and judicial branches and STILL had the nerve to massively increase the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS," Musk posted Sunday.
The America Party website outlines a platform focused on fiscal responsibility, space exploration, and what it calls "merit-based immigration." Notably, it includes support for Universal Basic Income pilot programs as artificial intelligence reshapes work - hardly traditional Republican territory.
Musk hasn't filed formal paperwork with the Federal Election Commission, though any new political entity would be required to register. The America Party website exists and has gathered followers, but turning social media buzz into ballot access requires navigating complex state laws.
Former Trump strategist Steve Bannon called Musk "Elmo the Mook" and suggested he should be deported for starting a third party. Such reactions from Trump's base suggest Musk won't easily poach Republican voters.
The billionaire faces a fundamental choice: Focus on building Tesla and SpaceX into trillion-dollar companies, or spend the next two years trying to crack a political system designed to resist exactly this kind of challenge.
Why this matters:
Q: Can Elon Musk run for president on his America Party ticket?
A: No. Musk was born in South Africa and became a US citizen in 2002. The Constitution requires presidents to be "natural born citizens," meaning born on US soil or to American parents abroad. Musk can fund and lead the party but not run for president.
Q: How much did Musk spend helping Trump win in 2024?
A: Musk spent $277-290 million on the 2024 election, with $239 million flowing through his America PAC. This made him the largest individual political donor in US history, far exceeding previous records set by other billionaires.
Q: What exactly was DOGE and why did Musk leave?
A: The Department of Government Efficiency was an unofficial agency Musk headed from January to May 2025. It fired hundreds of federal workers and canceled contracts. Musk left when his "special government employee" term expired in May.
Q: What does the America Party platform actually support?
A: The party supports fiscal responsibility, space exploration, nuclear power, merit-based immigration, and Universal Basic Income pilot programs. It specifically promotes "Space Frontier" investments in Mars research and space mining - areas where Musk's companies would benefit.
Q: How hard is it to get a third party on ballots in all 50 states?
A: Extremely difficult and expensive. Each state has different requirements, from collecting thousands of signatures to paying filing fees. Ross Perot spent an estimated $10 million just on ballot access in 1992, equivalent to about $20 million today.
Q: Which congressional seats might Musk target in 2026?
A: Musk hasn't named specific races but plans to focus on 2-3 Senate seats and 8-10 House districts. He'll likely target Republicans who voted for Trump's spending bill in competitive districts where America Party candidates could play spoiler.
Q: Has any billionaire successfully started a political party before?
A: Ross Perot came closest in 1992, spending $65 million of his own money and winning 19% of the popular vote. But he won zero electoral votes and his Reform Party collapsed after 1996, showing the structural barriers third parties face.
Q: What can Tesla's board do about Musk's political activities?
A: Tesla's board could theoretically remove Musk as CEO if his political work conflicts with his duties. However, Musk controls about 13% of Tesla stock and has significant board influence, making this highly unlikely despite investor concerns.
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Robert Brown
Marcus Schuler
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