In a stunning political development, Tesla and SpaceX CEO Elon Musk has launched a new political party, dubbed the America Party, marking his formal entry into U.S. politics. The move comes amid a high-profile rift with former President Donald Trump, particularly over disagreements on Trump’s 2017 Tax Cuts and Jobs Act—long considered a cornerstone of Trump-era economic policy.

Tax Policy at the Heart of the Fallout

Sources close to both camps confirmed that tensions escalated in recent months after Musk publicly criticized Trump’s tax law, claiming it disproportionately benefited large corporations while neglecting small businesses and middle-class Americans. Musk has long advocated for a “tech-forward, meritocratic capitalism,” which he says Trump’s law failed to support.

In a post on X, Musk stated:

“The time has come for a new political direction—one that embraces innovation, economic fairness, and American excellence.”

America Party: A New Conservative Vision or a Political Wild Card?

The America Party, according to Musk, will stand on three pillars: technological advancement, fair capitalism, and national innovation leadership. While Musk hasn’t yet declared whether he’ll run for office himself, party officials hinted at a possible push for House and Senate candidates in 2026, with eyes on 2028.

Musk’s political ideology appears to blend elements of libertarian economics with moderate social policies, which could attract voters dissatisfied with both the Republican and Democratic parties.

Trump Responds: “Musk’s Party Is a Joke”

Never one to remain silent, Donald Trump lambasted Musk's announcement, calling the America Party "ridiculous" and accusing Musk of betraying the conservative movement. Speaking at a campaign rally in Ohio, Trump said:

“Elon made his billions thanks to America’s success under my leadership. Now he wants to divide us with his vanity project. It’s a joke, folks!”

Trump allies have already begun mobilizing to discredit Musk’s efforts, labeling him an opportunist with no real political credentials.

Implications for 2026 and Beyond

Political analysts say Musk’s entry into the political arena could fracture the Republican base, particularly among younger, tech-savvy voters and fiscal moderates. While it’s too early to predict electoral outcomes, some suggest Musk’s party could follow the path of Ross Perot’s Reform Party or even challenge the two-party duopoly in the long term.

Meanwhile, Democrats have mostly remained silent, possibly seeing the split as advantageous in a tight political landscape.

Conclusion: Tech Meets Politics in an Explosive Shift

Musk’s America Party launch marks one of the most significant political shakeups in years. Whether this bold move leads to a new national movement or fizzles under pressure remains to be seen. But one thing is clear: the lines between Silicon Valley and Washington are now thinner than ever.