Once a close Trump ally and key campaign financier, Musk has now broken ranks with the former president. After pouring $250 million into Trump’s re-election and even heading the Department of Government Efficiency (DOGE), Musk exited the administration in May over disagreements on tax and spending legislation.

The conflict deepened after Trump passed a massive budget bill that omitted green subsidies critical to Musk’s businesses. “When it comes to bankrupting our country with waste & graft, we live in a one-party system,” Musk posted on X. “Today, the America Party is formed to give you back your freedom.”

Party Formation Still Unclear

As of Saturday, there was no record that the America Party had been formally registered with the Federal Electoral Commission. Musk has not named any leadership or candidates, given his own ineligibility to run for president due to being born outside the US.

Referencing a poll he ran on X, Musk claimed users supported a new political party “by a factor of 2 to 1.” His announcement, however, comes as third-party efforts in the US continue to struggle for national traction.

Trump Retaliates, Criticizes Musk

In response to Musk’s criticism, Trump accused the billionaire of hypocrisy, writing, “Without subsidies, Elon would probably have to close up shop.” The president also hinted that DOGE would review subsidies benefiting Musk’s companies, including Tesla, SpaceX, and Starlink.

The feud marks a dramatic shift in the relationship between two of the most influential figures in American business and politics—and signals the start of a potentially turbulent new phase in the 2026 electoral landscape.