Further escalation in the feud between billionaire Elon Musk and US President Donald Trump: Musk announced the founding of his own party on Independence Day. The “America Party” aims to end the current two-party system in the US and, according to Musk, “give citizens back their freedom.” He himself cannot run for president.

The entrepreneur spread the news via his own short message service X, formerly Twitter, citing a poll he initiated among his followers. “In a 2:1 ratio, you want a new political party – and you’re going to get it,” Musk wrote on Saturday. The new political course is a reaction to what he sees as the corrupt establishment in Washington. “When it comes to bankrupting our country through waste and corruption, we have long been living in a one-party system – not a democracy,” Musk wrote.

From Trump confidant to political opponent

Just a few months ago, Musk was considered one of President Trump’s most important supporters. According to reports, the multi-billionaire provided the Republican’s election campaign with $300 million. In return, he was given an influential advisory position within the government, where he advocated drastic cuts in government spending, particularly in research and administration.

But the political alliance between the two alpha males ended abruptly when Trump pushed through key tax plans with a controversial package of legislation known as the “Big Beautiful Bill” – without consulting Musk. The entrepreneur felt betrayed and announced that he would take political action against Trump and his supporters in the future.

Trump strikes back

The response from the White House was not long in coming: Trump reacted sharply to Musk’s party formation and announced a review of all government subsidies from which Musk’s companies had benefited to date. “Elon probably gets more tax money than any other person in history – by far,” Trump said, according to US media reports. Without this government aid, the president said, “he would probably have to close his shop, no more rocket launches, no more electric cars – and we would save a fortune.”

In fact, much of Musk’s corporate empire – including Tesla, the space company SpaceX and the satellite operator Starlink – depends, at least indirectly, on government contracts or subsidy programs.

Political goal: Attack Trump’s base

With the founding of the “America Party,” Musk now wants to take targeted action against Republican lawmakers who supported Trump’s legislative plans. According to Musk, they should be “ashamed of themselves.” The entrepreneur wants to exert his influence by providing massive financial support to opposing candidates, especially in next year’s primaries.

However, Musk himself will not be running for president: as a native South African, the US Constitution does not allow him to run for the highest office in the country. Nevertheless, his political involvement is likely to have a significant impact on the power structure within the Republican Party – and possibly also on the 2028 election campaign.

Credits: APA