Elon Musk Launches America Party After Trump Tax Bill Disagreement

Elon Musk, the CEO of Tesla, has announced the formation of his own political party in the United States, named the "America Party." This decision comes after a public disagreement with President Donald Trump over a recently passed tax and spending bill, which Musk criticized for eliminating electric vehicle subsidies and increasing the national debt. Musk's move is driven by his belief that the current two-party system is flawed and inefficient, necessitating a new political force to drive genuine change.

Musk made the announcement on his social media platform, describing the party as a response to the country’s perceived "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 comprehensive tax and spending bill, which Musk opposed for eliminating EV subsidies and expanding the federal deficit. Musk has pledged to invest heavily to defeat the lawmakers who supported the bill, particularly in the 2026 midterm elections.

Musk's new political formation has sparked excitement in the crypto market, particularly for Bitcoin. Financial commentator Lyn Alden highlighted the dramatic increase in the US budget deficit, predicting that $2 trillion more will be added to the US debt in 2024 alone. Musk has been critical of Trump’s new mega-economic bill, which he calls the “One Big Beautiful Bill.” The bill will increase the debt ceiling by $5 trillion and add an additional $3 trillion in debt to the country. Musk lashed out at Trump, saying, “This is going to bankrupt the country.” Musk also argued that Trump and the Republicans have failed to keep their promises of “cutting spending” in their election promises last year.

Crypto investor Lark Davis reminded that Bitcoin usually makes double-digit gains after such huge spending bills, saying, “When Trump signed another huge spending bill at the end of 2020, Bitcoin rose by 38%. If the same pattern repeats, the BTC price could hit $150,000. Because nothing can stop this train.”

Unity Wallet COO James Toledano commented, “The government printing so much money is weakening the dollar while strengthening Bitcoin’s ‘digital gold’ status.” 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. Musk has stated that his newly launched America Party will support Bitcoin, criticizing fiat currency as “hopeless.” This stance has led to speculation that the party's platform could bring about regulatory changes that benefit the crypto industry.

While the increasing public spending and borrowing trend in the US creates uncertainty in financial markets, many investors are turning their eyes back to limited-supply digital assets like Bitcoin. Elon Musk’s new political formation, the “America Party,” shows that this financial turmoil will have not only political but also economic consequences. Musk's break with Trump has raised concerns within the Republican Party, with fears that his new party could divide 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.