Musk announces forming of ‘America Party’ in further break from Trump

A day after asking his followers on X whether a new U.S. political party should be created, Elon Musk said on Saturday that the "America Party is formed." (Reuters/File)
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Updated 06 July 2025
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Musk announces forming of ‘America Party’ in further break from Trump

  • ‘Today, the America Party is formed to give you back your freedom’
  • Despite Musk’s deep pockets, breaking the Republican-Democratic duopoly will be a tall order

WASHINGTON: The dispute between Republican President Donald Trump and his main campaign financier Elon Musk took another fractious turn on Saturday when the space and automotive billionaire announced the formation of a new political party, saying Trump’s “big, beautiful” tax bill would bankrupt America.

A day after asking his followers on his X platform whether a new US political party should be created, Musk declared in a post on Saturday that “Today, the America Party is formed to give you back your freedom.” “By a factor of 2 to 1, you want a new political party and you shall have it!” he wrote. The announcement from Musk comes after Trump signed his self-styled “big, beautiful” tax-cut and spending bill into law on Friday, which Musk fiercely opposed.

Musk, who became the world’s richest man thanks to his Tesla car company and his SpaceX satellite firm, spent hundreds of millions on Trump’s re-election and led the Department of Government Efficiency from the start of the president’s second term aimed at slashing government spending.

The first sign of investor dissatisfaction with Musk’s announcement followed later in the day. Investment firm Azoria Partners will postpone the listing of a Tesla exchange-traded fund, Azoria CEO James Fishback said in a post on X.

Fishback is asking Tesla’s board to clarify Musk’s political ambitions and said the new party undermines the confidence shareholders had that he would be focusing more on the company after leaving government service in May.

Musk said previously that he would start a new political party and spend money to unseat lawmakers who supported the bill. Trump earlier this week threatened to cut off the billions of dollars in subsidies that Musk’s companies receive from the federal government. Republicans have expressed concern that Musk’s on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.

Asked on X what was the one thing that made him go from loving Trump to attacking him, Musk said: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”

There was no immediate comment from Trump or the White House on Musk’s announcement. The feud with Trump, often described as one between the world’s richest man and the world’s most powerful, has led to several precipitous falls in Tesla’s share price. The stock soared after Trump’s November reelection and hit a high of more than $488 in December, before losing more than half of its value in April and closing last week out at $315.35. Despite Musk’s deep pockets, breaking the Republican-Democratic duopoly will be a tall order, given that it has dominated American political life for more than 160 years, while Trump’s approval ratings in polls in his second term have generally held firm above 40 percent, despite often divisive policies.


Bangladesh’s leading contender for PM returns after 17 years in exile 

Updated 18 min 1 sec ago
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Bangladesh’s leading contender for PM returns after 17 years in exile 

DHAKA: Millions of supporters crowded the streets of Dhaka on Thursday to welcome Tarique Rahman, acting chairman of the Bangladesh Nationalist Party, who has returned to his country after more than 17 years in exile. 

Rahman, the son of ailing former Prime Minister Khaleda Zia, waved to the large crowds from the front of a BNP bus escorted by security, as people lined the route from the capital’s airport to a reception venue, waving national and party flags, chanting slogans and carrying banners and flowers. 

His return comes in the wake of former Prime Minister Sheikh Hasina’s ouster last year and as Bangladesh gears up to hold general elections in February, for which he is emerging as a leading contender to become prime minister. 

“As a member of the BNP, I want to say in front of you that I have a plan for the people of my country, for my country,” Rahman said as he addressed a throng of supporters in Dhaka. 

“This plan is for the interest of the people of the country, for the development of the country and for changing the fate of the people. For this, I need support from each and every one of this country.  If you people stand beside us, God willing, we would be able to implement those plans.” 

The 60-year-old lived in London after he fled Bangladesh in 2008 over what he called a politically motivated persecution. 

After facing multiple criminal convictions in Bangladesh, including money laundering and charges linked to an alleged plot to assassinate Hasina, courts acquitted him following Hasina’s removal from office, clearing the legal obstacles that delayed his return. 

Rahman’s homecoming is “significant” as it comes as Bangladesh is going through a “very critical political crisis,” said analyst Prof. Dilara Choudhury. 

“People of Bangladesh, they are expecting that there will be free and fair elections, and whoever wins will form the government and forward to the transition. In that sense, his return is significant.” 

Bangladesh will hold parliamentary elections on Feb. 12, its first vote since a student-led uprising removed Hasina and her Awami League-led government from power in August 2024. 

The South Asian nation of nearly 175 million people has since been led by interim leader Muhammad Yunus, a Nobel Prize-winning economist, who took over governance after Hasina fled to India, where she is now in self-exile. 

As the Yunus-led administration has banned Awami League from all activities, meaning the former ruling party would not be able to join the upcoming race, the BNP is on course to win the largest number of parliamentary seats, according to a survey published in December by the US-based International Republican Institute. 

“I believe a new era in our politics will start with the arrival of Tarique Rahman in the country,” political analyst Mahbub Ullah told Arab News. 

“He will take the realms of his party with his own hand and he will do all kinds of things to organize the party and lead the party to victory in the next election.”