New Party? Musk’s X Move STUNS Washington

Man pointing while speaking at a rally

Elon Musk proposes forming a new political party following his explosive public fallout with President Trump over a controversial Republican spending bill that threatens his companies’ federal contracts.

Key Takeaways

  • Musk and President Trump’s relationship has disintegrated over disagreements about a Republican budget bill, with Trump threatening to cancel Musk’s government contracts.
  • The feud began when Musk publicly criticized the Republican reconciliation bill as a “disgusting abomination” that would increase the federal deficit.
  • Musk claimed Trump would have lost the 2024 election without his support, having contributed nearly $300 million to Trump’s campaign.
  • The entrepreneur served as an unpaid presidential advisor and led the Department of Government Efficiency (DOGE) until May 2025.
  • Musk is leveraging his ownership of X (formerly Twitter) to propose a new political party that could reshape American politics beyond traditional affiliations.

The Fall of a Political Bromance

The once-strong alliance between President Trump and tech billionaire Elon Musk has crumbled into a public spectacle of accusations and threats. Their relationship, which saw Musk serve as a key advisor in the Trump administration and lead the Department of Government Efficiency (DOGE), deteriorated rapidly following Musk’s departure from his government role in May 2025. The breaking point came when Musk vehemently opposed a Republican tax and budget reconciliation bill, which he characterized as “outrageous” and “a disgusting abomination” that would significantly increase the federal deficit.

President Trump, clearly angered by this public criticism, defended the legislation as “one of the Greatest Bills ever presented to Congress.” The President expressed his disappointment in Musk’s stance, claiming the tech mogul had been involved in crafting the bill. “I’m very disappointed in Elon. I’ve helped Elon a lot,” said Mr. Trump. Musk quickly denied any involvement in the bill’s details, countering that the President would have lost the 2024 election without his substantial financial and public support.

Escalating Tensions and Economic Impacts

The conflict intensified when Musk made serious allegations regarding President Trump, suggesting his name appeared in files related to Jeffrey Epstein and implying this might be why certain documents remain sealed. This accusation represents a startling shift from Musk’s previous effusive support of Trump. During the 2024 campaign, Musk had publicly declared, “I love @realDonaldTrump as much as a straight man can love another man,” and following the assassination attempt on Trump, Musk stated, “I fully endorse President Trump and hope for his rapid recovery.”

“I love @realDonaldTrump as much as a straight man can love another man,” said Elon Musk.

President Trump escalated the confrontation by threatening to terminate Musk’s federal contracts as a cost-cutting measure, a move that immediately impacted Tesla’s stock, causing shares to drop significantly. Musk initially responded with a threat to decommission SpaceX’s Dragon spacecraft but later backtracked on this statement. The economic repercussions of this feud extend beyond Musk’s companies, as it raises questions about the stability of major government contracts and the potential ripple effects throughout the aerospace and electric vehicle industries.

A New Political Force Emerging

As the feud with President Trump intensifies, Musk has begun suggesting the formation of a new political party. Using his social media platform X (formerly Twitter), Musk has initiated conversations about creating an alternative to the traditional two-party system. This proposal comes after Musk’s significant political investment in the 2024 election cycle, where he contributed nearly $300 million to support Trump and Republican candidates. His ownership of X gives him a powerful platform to shape political discourse and potentially mobilize his millions of followers toward a new political movement.

“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” said Musk.

The timing of Musk’s proposal is strategic, coming during heated budget reconciliation discussions when many fiscal conservatives within the Republican party are expressing concerns about government spending. Vice President JD Vance has publicly supported President Trump in this dispute, but Musk’s opposition has exposed potential fractures in Republican unity. If realized, Musk’s new political party could appeal to Americans frustrated with both major parties, particularly those concerned about government spending, technological innovation, and space exploration—areas where Musk has established significant credibility.

Potential Reshaping of American Politics

Musk’s proposal for a new political party represents more than just a reaction to his falling out with President Trump—it signals a potential transformation in American politics. With his massive wealth, technological influence, and media reach through X, Musk possesses unique resources to challenge the traditional political establishment. His experience leading the Department of Government Efficiency has given him insider knowledge of federal operations, which he could leverage in creating a platform focused on governmental reform and fiscal responsibility.

The Trump-Musk feud has also overshadowed important diplomatic events, including President Trump’s recent meeting with German Chancellor Friedrich Merz. This meeting, intended to address critical trade issues and international relations, received less attention than the high-profile dispute between the President and the tech mogul. As Musk moves forward with his political ambitions, the American political landscape could see a significant realignment, potentially drawing supporters from both major parties who are seeking alternatives to the current system.

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