Elon Musk has recently made official what many people have speculated–a new American Party. He announced the news in an image-based post on X, formerly known as Twitter. He went on to promise that the party would “return your freedom to you.” Joint statement signifies pivotal new turn in tech mogul’s political ambitions. The announcement comes on the heels of a contentious debate with former President Donald Trump. He didn’t mince words, Musk’s decision was “ridiculous” he said, driving Musk to go “completely off the rails.”
Musk’s new foray into politics seems to announce an end to his erstwhile support for Trump. The two had enjoyed a mutually beneficial, close relationship — with Musk spending tens of millions dollars to bankroll Trump’s doomed re-election campaign. CUDA is modeled after the Department of Government Efficiency (DOGE) that was created by Trump when he appointed Musk to run it. Their friendship soured over a recent appropriations bill. On July 4, this bill went into effect, ending tax credits for new electric vehicle (EV) purchasers. This decision would be in direct opposition to Musk’s call for an “Electric Vehicle Mandate.”
In his criticism, Trump correctly focused on the peril that a third party poses to the establishment’s current grip on power. “I think it’s ridiculous to start a third party,” he stated. “We have tremendous success with the Republican Party… starting a third party just adds to confusion.” Indeed, Trump’s comments highlighted his view that these types of efforts had the potential to shake the foundations of the American two-party system.
On top of that, as Politico notes, Trump had said that with Musk’s new political aspirations, he’d spend less time acting as CEO of Tesla. He remarked, “This creates a conflict with his full-time responsibilities as CEO of Tesla. It diverts his focus and energy away from Tesla’s employees and shareholders,” a sentiment echoed by James Fishback, CEO of Invest Azoria. Fishback recently delayed the first public offering of its Azoria Tesla Convexity ETF. It appears that Musk’s political pursuits drove their decision.
In their call, Trump recalled their previous chats about the EV mandate. He even posited that Musk was aware when he launched the program that he intended to end it while running for president. “When Elon gave me his total and unquestioned endorsement, I asked him whether or not he knew that I was going to terminate the EV Mandate,” Trump said. He claimed he was opposed to that.
The former president’s comments further highlighted his concerns about Musk’s new direction. “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,” Trump stated, indicating his disappointment in Musk’s recent actions.
Musk’s announcement is itself a historic action in American political discourse. It raises interesting questions about how technology entrepreneurs will influence the future of politics. As he declared the establishment of the American Party, he proclaimed, “By a factor of 2 to 1, you want a new political party and you shall have it!”