Elon Musk Launches America Party After Tax Bill Fallout

Elon Musk, the billionaire entrepreneur behind companies like Tesla and SpaceX, has announced the formation of a new political party in the United States called the "America Party." This move comes after a public fallout with President Donald Trump over a recently signed tax and spending bill, which Musk has criticized for eliminating electric vehicle subsidies and increasing the national debt. Musk's decision to create the America Party is driven by his belief that the current two-party system in the U.S. is corrupt and wasteful, and that a new political force is needed to bring about real change.

Musk made the announcement on his social media platform, describing the party as a response to the country’s “one-party system.” He accused both Republicans and Democrats of enabling "waste and graft" and vowed that the America Party would prioritize fiscal responsibility and innovation. The party's formation follows Trump’s signing of a sweeping tax and spending bill, which Musk opposed for eliminating EV subsidies and ballooning the federal deficit. Musk has pledged to spend heavily to defeat the lawmakers who backed the bill, particularly in the 2026 midterm elections.

The America Party's vision aligns with Bitcoin's value proposition, emphasizing fiscal conservatism, debt reduction, and a focus on the middle class. This alignment has sparked interest in the crypto market, as Musk's influence and the party's platform could potentially support the growth and adoption of cryptocurrencies. The crypto market reacted positively to the news, with some analysts suggesting that Musk's new political venture could bring about regulatory changes that benefit the crypto industry.

Just a few hours after Musk's statement, the America Coin (AP) memecoin was launched on the Pump.fun platform. Its price soared by 120%, and its capitalization reached $18 million. Speculators rushed to buy, expecting a repeat of the Dogecoin (DOGE) story. Traders have already dubbed AP the ”Dogecoin of politics,” although Musk himself has not endorsed the coin. At the time of writing, almost the entire ranking of the most popular cryptocurrencies on DEX Screener consists of tokens related to the America Party and Musk. In the last 24 hours, the price of the America Party (AMERICA) coin on Solana (SOL) has soared by more than 12,000%. The asset’s capitalization is over $7 million.

Dogecoin—Musk’s favorite memecoin—was hardly affected by the news. The price of DOGE fell by 0.3% to $0.1637 over the past day. Meanwhile, the coin’s trading volume dropped by 59%.

The public conflict between Musk and Trump began after the billionaire left the position of head of the Department of Government Efficiency, a role the US president created specifically for him. Sources claimed that tension between the two had been building since the spring of 2025, when Musk publicly opposed Trump's sweeping tax bill, calling it a ”financial disaster.” The president, in turn, accused Musk of not understanding economic strategy. The situation escalated after Musk's statement about the possible curtailment of the Dragon program, to which Trump responded by threatening to renegotiate SpaceX's contracts with NASA. A heated exchange erupted on social networks: Musk hinted at Trump's connection with Jeffrey Epstein and called for impeachment, while Trump reportedly threatened to expel Musk or his companies from the United States.

To counter the Republicans, whom Musk had previously supported, the billionaire announced the formation of his own party. On Independence Day—the Fourth of July—the businessman launched a poll on X (formerly Twitter). More than 65% voted in favor of forming a party.

Musk's break with Trump has raised concerns within the Republican Party, with fears that his new party could split conservative voters in the 2026 midterms. Musk says his focus will be on flipping key congressional seats, using concentrated efforts rather than broad national campaigns. The America Party has not yet been officially registered with the Federal Election Commission, raising doubts about its legal status. However, Musk's massive fortune and influence could make his effort stand out, despite the historical challenges faced by third parties in the U.S.

The formation of the America Party marks a significant political shift for Musk, who was once a major Trump donor and led the Department of Government Efficiency. His stance shifted after opposing the tax bill, which he says threatens the country’s fiscal future. Musk has warned that the legislation will push the U.S. deeper into debt, estimating it could add over $3 trillion to the federal deficit over the next decade. The America Party's initial focus will be on a few key races, with Musk citing an online poll where two-thirds of users supported the creation of a new political party.