WASHINGTON, D.C. – A major fight just got even bigger between two powerful men in America: former President Donald Trump and billionaire businessman Elon Musk.
On Saturday, Musk shocked the world by announcing he’s starting a new political party called the “America Party.” This means he no longer supports Trump — and the breakup is loud, messy, and making headlines.
“By a factor of 2 to 1, you want a new political party — and you shall have it!” Musk posted on his social media platform, X (formerly Twitter).
“The America Party is formed to give you back your freedom.”
What Caused the Big Fight?
Just one day earlier, Trump signed a bill that cuts taxes and increases government spending. He proudly called it his “big, beautiful tax bill.”
But Musk hated it. He said the bill could bankrupt America, meaning the country might run out of money or fall deep into debt.
“Trump raised the U.S. deficit from an already insane $2 trillion under Biden to $2.5 trillion,” Musk said.
“This will bankrupt the country.”
That was the last straw for Musk. Even though he spent hundreds of millions helping Trump win re-election and even led a government department called the Department of Government Efficiency, Musk is now totally against him.
Trouble for Musk Already?
Musk’s big announcement caused trouble right away. A company called Azoria Partners, which planned to create a Tesla investment fund, said they’re putting it on hold.
“We need Tesla to focus on business, not politics,” Azoria’s CEO said.
“Shareholders are worried.”
They also want Tesla’s board to speak up about Musk’s political plans. Investors are nervous, especially because Musk left his government job in May and promised to focus more on running Tesla and SpaceX.
Trump Fights Back
Trump didn’t stay quiet for long. He has already threatened to cut the billions of dollars in government help that Musk’s companies get every year. This includes money for building electric cars and launching rockets.
Meanwhile, some Republicans are starting to panic. They’re worried that this Musk-vs-Trump fight could hurt their party in the 2026 elections, where they’re trying to keep their seats in Congress.
“This feud is splitting supporters and could cost us votes,” a party insider said.
Tesla’s Rollercoaster Stock Price
This isn’t the first time Musk’s drama has shaken the stock market. After Trump’s re-election in November, Tesla’s stock shot up to $488. But as the fight between Musk and Trump got worse, it crashed to $315.35.
Now, investors are wondering: Will Musk focus on his companies—or fight political battles instead?
Can Musk Really Start a New Party?
Musk is super rich, but starting a new political party is extremely hard. The Republican and Democratic parties have been the only real choices in American politics for over 160 years.
Even though some people are unhappy with both major parties, breaking their grip on U.S. politics is a massive challenge.
Still, Musk says he’s serious — and he’s willing to spend his fortune to defeat politicians who supported Trump’s latest bill.
No Comment from Trump… For Now
As of now, Trump and the White House haven’t officially responded to Musk’s announcement. But this is no small fight — it’s the richest man in the world versus the former most powerful man in the world.
And it looks like it’s just getting started.
