South African billionaire Elon Musk has threatened to form a new political party if US President Donald Trump’s Big Beautiful Bill passes the Congress. “If this insane spending bill passes, the America Party will be formed the next day,” Musk said in a post on X, as quoted by Business Insider.
“Our country needs an alternative to the Democrat-Republican uni-party so that the people actually have a VOICE.”
Earlier in June, the founder of Tesla made a poll on his social media platform: “Is it time to create a new political party in America that actually represents the 80% in the middle?”. 80% of those who answered responded positively.
According to The New York Times, the South Africa-born billionaire threatened that he would make all the Republicans serving in the US Congress “lose their primary next year if it is the last thing I do on this Earth.”
The New York Times comments that Musk, currently the biggest donor of the Republican Party, giving 300 million US dollars to GOP candidates in 2024, seems to continue his public feud with Donald Trump.
Meanwhile, The New York Times highlights that Trump appeared to threaten on cutting off federal funds to Musk’s companies, including SpaceX. “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” wrote Trump.
Could Musk’s America Party change the political landscape in the United States?
The most successful third-party candidate in US history was Texas millionaire Ross Perot in 1992, who managed to get over 18% of the votes in 1993. Perot didn’t get enough votes to obtain a single member of the electoral college. However, his campaign was enough to take votes from both sides, especially in the US South and his native Texas.
This cost the election to George Bush, Sr. It’s not certain that Elon Musk will become America’s next kingmaker after his falling out with Trump, but he can certainly do some damage to his former ally on his way out.
Also Read: Trump hints at deporting Elon Musk amid unending disputes
The new face-off between Trump and Elon surface after the US president’s signature tax-cut and spending bill passed by the narrowest of margins and is headed to the House for final approval.
US Vice President JD Vance on Tuesday cast the tie-breaking vote to push President Donald Trump’s tax and spending bill through the Senate, following a marathon session of debate and revisions.
The massive package, dubbed the “One Big Beautiful Bill Act,” calls for tax breaks and increases in defence spending and immigration enforcement, which will be offset by cuts to health care and other social services.
The bill has been criticized for adding an estimated $3.3 trillion to the national debt.
Three Republican senators, Thom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky, joined all Democrats in voting against the bill, leaving the final vote tally at 50-50.
The bill will now go to the House of Representatives for final passage, with debate expected to take place on Wednesday. Trump has demanded the bill be signed into law by July 4, the US Independence Day holiday.
The feud erupted into open hostility this week. The billionaires feud evolved into threats flying over billions in federal subsidies, electric vehicle (EV) mandates, and even the billionaire’s U.S. citizenship.
The feud which has roiled markets and shaken political alliances, comes as Musk ramped up criticism of Trump’s recently passed spending and tax-cut bill.
The legislation, which narrowly cleared the Senate on Tuesday, phases out subsidies for EVs, a move that could cost Tesla up to $1.2 billion, according to J.P. Morgan analysts.
In response to Musk’s criticism, President Trump lashed out, accusing Musk of hypocrisy and warning that his government could revoke billions in subsidies and contracts tied to Tesla and SpaceX.
Speaking from the White House, Trump declared, “He’s upset he’s losing his EV mandate… but he can lose a lot more than that.”
Trump further escalated the rhetoric on his Truth Social platform, posting:
“No more rocket launches, satellites, or electric car production — and our country would save a fortune.”
He later joked that the Department of Government Efficiency (DOGE) — once led by Musk — might have to “go back and eat Elon.”
“We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon,” Trump said.
Musk, never one to back down, fired back on X (formerly Twitter):
“I am saying CUT IT ALL. Now.” While he stopped short of attacking Trump personally, he added, “I will refrain for now,” hinting at further fallout to come.
Tesla shares drop
Tesla shares dropped about 5.5% on Tuesday following the escalating tensions between Trump and Musk.
Tesla’s global sales have already been slowing, and its controversial robotaxi project which is central to its future growth depends on federal and state regulatory support.
The EV sector at large felt the heat. Shares in Rivian and Lucid Motors slid 2% and 3.8%, respectively. Meanwhile, the Electrification Coalition, an EV advocacy group, urged lawmakers in the House to revise the bill.
Daily Despatch
