Musk Announces New Party on X
Trump Calls It "Absurd"
Supporters Pressure Tesla Board
Elon Musk, CEO of Tesla, who once showcased a 'bromance' with U.S. President Donald Trump, has officially entered the political arena by declaring the launch of the 'America Party.' President Trump strongly criticized Musk's new party, calling it "something that will only bring chaos." The conflict between the two, triggered by Trump's tax cut plan, is now shaking up the entire American political landscape.
On July 5 (local time), CEO Musk announced on X (formerly Twitter), "You wanted a new party, and now you will have it," adding, "Today, the America Party is being founded to help you reclaim your freedom." He further explained the background of the party's creation by stating, "We are living under a one-party system that is bankrupting the nation through waste and corruption. This is not democracy." However, according to the Wall Street Journal (WSJ), Musk has not yet submitted official paperwork to the Federal Election Commission (FEC) to register the America Party.
The so-called 'Trump tax cuts' are at the core of Musk's decision to turn against Trump. Early last month, he openly criticized Trump's "one big, beautiful bill" as a "disgusting abomination." Although there was a brief period of reconciliation after Musk deleted his critical posts directed at Trump, once the tax cuts passed Congress, Musk denounced the Republican Party as the "PORKY PIG PARTY, irresponsibly and greedily wasting finances," and announced the launch of his new party.
The WSJ commented, "Musk's new party initiative is a direct challenge from a billionaire who was once a key supporter and close ally of Trump," and noted, "While a third-party candidate has never been elected president, such a candidate can play the role of a 'spoiler' by drawing votes away from major parties."
In response to Musk's new party, President Trump told reporters on July 6, "Establishing a third party is absurd," and added, "Launching a third party will only increase chaos."
President Trump also posted on his own social network, Truth Social, stating, "Musk has been completely out of control, like a 'train wreck,' for the past five weeks," and pointed out, "There has never been a successful third party in the U.S., and the system itself was not designed with that in mind." He further claimed, "The only thing third parties do well is create total chaos and destruction."
President Trump suggested that Musk may be dissatisfied with the repeal of electric vehicle (EV) mandates, emphasizing that he himself has always opposed such mandates and that Musk was aware of this. This appears to be an attempt to portray Musk's party launch as motivated by personal interests rather than genuine political reform.
Foreign media outlets analyze that it is institutionally difficult for a third party to take root in the U.S. due to the 'winner-takes-all' electoral system, which makes it hard for minor parties to secure seats. In fact, during the 2024 presidential election, there was an attempt to establish a centrist third party called 'No Labels,' but it failed to achieve significant results. Reuters reported, "The two-party system of the Republican and Democratic parties has dominated American politics for over 160 years, and President Trump has maintained approval ratings in the 40% range despite divisive policies." The Financial Times (FT) also noted, "Even though Musk has enormous financial resources, breaking the power structure of American politics, which is controlled by the two major parties, is by no means easy."
Amid these clear practical limitations to launching a new party, Trump supporters have begun pressuring Tesla's board of directors. James Fishback, CEO of Azoria Partners and an ally of President Trump, sent an open letter to Tesla board chair Robyn Denholm, urging the board to immediately meet with Musk to clarify his political ambitions and to assess whether he can fulfill his full-time duties as Tesla CEO. He also announced that his investment firm, Azoria, would put on hold its planned Tesla ETF listing.
U.S. Treasury Secretary Scott Besant also told CNN in an interview that the boards of the various companies Musk runs would want him to focus on management, calling for restraint in his political activities.
Companies led by Musk are also expected to face political backlash. U.S. financial media outlet Barron's reported, "SpaceX's $22 billion worth of government contracts are at risk of being revoked," adding, "NASA and Department of Defense programs could also be affected."
Tesla's stock price is also fluctuating. While Tesla shares traded at around $406 at the beginning of the year, they closed at $315 as of July 3, marking a decline of about 22% in the first half of the year.
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