Musk Launches America Party Amid Trump Feud

a { color: #880000 !important; background: #ffeeee !important; } Latest News from NourishThe Nourish Mission (formerly OneSub)Get answers to today's big questionsMusk Launches America Party Amid Trump FeudUS Politics > PoliticsIn early July 2025, Elon Musk announced the formation of the America Party, aiming to challenge the US's two-party system and oppose President Trump's recent spending bill. Trump dismissed the move as "ridiculous," warning third parties cause chaos. The feud follows Musk's fallout with Trump over fiscal policy and Tesla subsidies, raising concerns about Musk's political ambitions and their impact on his companies.

What's happened

In early July 2025, Elon Musk announced the formation of the America Party, aiming to challenge the US's two-party system and oppose President Trump's recent spending bill. Trump dismissed the move as "ridiculous," warning third parties cause chaos. The feud follows Musk's fallout with Trump over fiscal policy and Tesla subsidies, raising concerns about Musk's political ambitions and their impact on his companies.

What's behind the headline?

Political Disruption and Corporate Governance

Elon Musk's announcement of the America Party represents a significant escalation in his political engagement, moving beyond advisory roles into direct electoral competition. This move challenges the entrenched two-party system in the US, which has historically resisted third-party success due to structural and electoral barriers.

The Musk-Trump Fallout

The public feud between Musk and Trump underscores the fragility of political alliances tied to business interests. Musk's opposition to Trump's "big beautiful" spending bill, particularly its impact on Tesla subsidies, reveals how corporate and political agendas can collide, affecting shareholder value and public perception.

Boardroom Pressure and Fiduciary Responsibility

Tesla's board faces mounting pressure to rein in Musk's political ambitions, especially as Tesla's stock has declined about 20% since early 2025 amid missed delivery targets and alienated customers. The board's potential intervention reflects growing concerns about Musk's focus and the legal risks of his extracurricular activities.

Implications for US Politics

While Musk's America Party aims to inject fiscal discipline and disrupt the status quo, historical precedents suggest third parties struggle to gain traction. However, Musk's high profile and financial resources could amplify its influence, particularly in tight legislative races.

What This Means for the Public

For voters, Musk's political venture introduces new dynamics in upcoming elections, potentially splitting conservative votes or forcing major parties to adjust policies. For shareholders and employees of Musk's companies, the intertwining of political and business roles raises questions about leadership stability and corporate focus.

Forecast

The America Party will likely face significant hurdles in registration, candidate recruitment, and voter outreach. Tesla's board is expected to increase oversight of Musk's activities to protect shareholder interests. The Musk-Trump feud will continue to shape media narratives and political calculations ahead of the 2026 midterms.

What the papers say

Charles Gasparino of the NY Post highlights the legal and fiduciary challenges Musk's political ambitions pose to Tesla's board, noting that Musk's prior antics were tolerated when Tesla's stock soared but are now under scrutiny as shares fall. Gasparino writes, "Finally, Musk might have to conform to some semblance of what is generally regarded as normal behavior for a CEO running a public company." The New Arab and Al Jazeera provide detailed coverage of Trump's reaction, quoting him calling Musk's new party "ridiculous" and warning that third parties bring "Complete and Total DISRUPTION & CHAOS." Trump also accuses Musk of turning against him due to cuts in EV subsidies, a point Musk disputes, emphasizing fiscal responsibility instead. Business Insider UK offers historical context on third-party challenges in the US, referencing Ross Perot's Reform Party and its limited success, while noting Musk's poll on X showed over 65% support for a new party. It also quotes Trump describing the GOP as a "smooth running 'machine'" contrasting with Musk's disruptive plans. The Independent and Gulf News report on the escalating personal feud, including Trump's social media tirades calling Musk a "TRAIN WRECK" and Musk's retorts questioning the purpose of DOGE if debt increases. They also cover Trump's concerns about Musk's ally Jared Isaacman and NASA leadership. SBS News includes Treasury Secretary Scott Bessent's subtle criticism, suggesting Musk's company boards prefer he focus on business rather than politics, reflecting broader institutional unease. Together, these sources paint a picture of a high-profile political and corporate clash with significant implications for US politics, business governance, and the future of the two-party system.

How we got here

Elon Musk, once a close ally of Donald Trump and head of the Department of Government Efficiency (DOGE), fell out with the president over a major tax and spending bill signed in July 2025. Musk criticized the bill for increasing US debt and cutting electric vehicle subsidies, prompting him to announce a new political party to address fiscal discipline and challenge both major parties.

Go deeper

What are the chances of the America Party succeeding in US elections?
How is Tesla's board responding to Musk's political ambitions?
What impact does the Musk-Trump feud have on US politics?

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