Elon Musk has gone ‘absolutely insane’ following move to form a new political party
Elon Musk’s America Party: Billionaire’s Political Makeover Sparks Market Chaos and Boardroom Backlash
Once allies, now adversaries: Elon Musk and Donald Trump are publicly feuding—but Musk’s latest move may shake the political landscape even more. After backing Trump’s 2024 campaign with over $275 million via America PAC, Musk has now announced the creation of his own America Party, a third-party bid aimed at disrupting the U.S. political duopoly. This comes in direct response to Trump’s recently passed One Big Beautiful Bill—a massive tax-and-spending package Musk savagely denounced. The fallout has rattled shareholders, investors, and even Tesla’s board.
Let’s unpack the motivations, market repercussions, and political implications of Musk’s dramatic shift.
🚀 From Trump Ally to Political Challenger
Musk’s relationship with Trump began fruitfully. As head of the short-lived “Department of Government Efficiency” (DOGE Office), Musk was a prized adviser. He even financed Trump’s reelection via America PAC, founded in 2024, becoming the top donor at over $275 million e.vnexpress.net+15time.com+15businessinsider.com+15.
The break came when Trump signed the One Big Beautiful Bill, a sweeping fiscal package. Musk slammed it as “debt slavery” and a “disgusting abomination” livemint.com+1aljazeera.com+1. He warned it would irreparably damage the U.S. economy and evaporate Tesla’s EV tax credits.
Within hours of its passage, he threatened a new party—and the next day officially announced the America Party to “give you back your freedom.” His campaign included social-media polling showing 65–80% support for a new party cnbc.comelpais.com+8time.com+8financialexpress.com+8.
📉 Market Shock: Tesla’s Tumble
Investors immediately reacted—Tesla shares plunged 6.8%, marking five consecutive weeks of decline and slashing over $200 billion in market cap ft.com+1livemint.com+1. Analysts warn Musk’s political ambitions are diverting his focus from core business priorities like autonomous driving and AI cnbc.com+13elpais.com+13businessinsider.com+13.
Even Senate-confirmed Treasury Secretary Scott Bessent suggested Musk’s board is probably urging him to focus on Tesla, not politics businessinsider.com+1en.wikipedia.org+1. Fellow billionaire investors also voiced concerns that the America Party would fragment the Republican vote—potentially harming both Trump and Tesla.
🔍 The America Party’s Strategy
According to Musk, the plan isn’t a blanket takeover. Instead, it leverages a surgical political approach:
Target: 2–3 pivotal Senate seats and ~10 House districts in 2026 to tip razor-thin majorities ft.com+15expressnews.com+15aljazeera.com+15time.com+2cnbc.com+2financialexpress.com+2.
Ideology: Fiscal conservatism, free expression, tech-friendly policy, and military modernization with AI huffingtonpost.es.
Tactic: Act as kingmakers—forcing attention on Third-Century issues like the BBB and federal debt.
That minimalism echoes strategic political theorists, though the U.S.’s ticket-access landscape remains steep. Musk’s party is not yet registered with the FEC, and faces a state-by-state ballot-access hurdle en.wikipedia.org.
🎤 Trump Strikes Back: “Off the Rails”
Unsurprisingly, Trump was swift and derisive, calling Musk’s effort “ridiculous”, a “train wreck”, and warning that third-party disruption only causes chaos ndtv.com+1cnbc.com+1. He even hinted at rescinding SpaceX/Tesla contracts, deportation threats, and revoking EV policies .
Trump defended the GOP as the only viable option, stoked division, and accused Musk of betraying the party for personal gain .
📊 Political & Cultural Challenges
Musk’s transformation from tech magnate to political outsider brings both possibilities and pitfalls:
Natural-born citizenship: His South African origins landed him awkwardly in Trump’s stronghold cnbc.com+2financialexpress.com+2livemint.com+2.
Third-party history: U.S. third parties (like Roosevelt’s Bull Moose in 1912) can split votes dramatically—often backfiring aljazeera.com.
Retail underdog: Despite high net worth, Musk lacks grassroots political machine, traditional campaign skills, or cleavages to mobilize mass memberships .
Corporate optics: Tesla investors fear more distractions; SpaceX and NASA contracts hang in the balance expressnews.com.
📅 Will the America Party Gain Traction?
Several voices, from Mark Cuban to Anthony Scaramucci, have expressed interest in collaborating irishtimes.com+8businessinsider.com+8en.wikipedia.org+8. But institutional barriers—ballot access, volunteer base, financing infrastructure—loom large.
Analysts predict Musk’s splash may cause momentary disruption, but historical patterns (Ralph Nader, Ross Perot) suggest third parties rarely achieve long-term viability .
Still, by positioning the America Party as kingmakers, Musk may recalibrate party discipline in midterm and legislative debates—though it could also erode GOP power, aligning with narratives of delivering “spoiler states” in 2026.
⚠️ Final Verdict: Business or Political Gamble?
For Musk: This is a bold gamble—backed by tens of millions in political capital, making his future a high-stakes mix of business and ideology.
For Tesla: It may cost untold billions in market value and distract from innovation during critical scaling periods.
For Trump and the GOP: Musk’s party could weaken margins or force ideological purification, but may also act as a pressure valve on fiscal conservatism.
For America: A billionaire launching a party may signify deep dissatisfaction with partisan deadlock—or deepen public cynicism over plutocratic influence.
🧭 What Comes Next?
Musk must officially register the party, recruit candidates, and secure ballot access by state deadlines.
Tesla’s board could intervene if Musk jeopardizes investor value through excessive political focus.
Trump’s revenge threats—cancellation of contracts, political retribution—are rising.
2026 midterms will test if America Party redirects votes or merely dilutes influence.
📋 Bottom Line
Elon Musk’s political upheaval marks a seismic shift from tech disruptor to political agitator. His America Party weaponizes his wealth, influence, and digital reach. But U.S. history warns that third parties founder without discipline, momentum, and infrastructure.
If Musk can execute his surgical strategy—targeting a handful of seats—he might offer genuine kingmaker influence. Yet this could just as easily backfire: Musk’s political ambitions may drag support away from both parties, deepen polarization, and undermine his corporate responsibilities.
One thing is certain: the Big, Beautiful Bill did more than fracture U.S. politics—it fractured a high-profile alliance. Now, Elon Musk is betting his fortune and legacy on America’s political theater. The question isn’t just if he wins—it’s whether he can stay in the game without losing everything else.