New York: Tesla CEO, Elon Musk, announced the formation of a new political party in the US, which he calls the “America Party,” aiming to upend what he labels as the nation’s entrenched “one-party system.”

The move marks a dramatic political shift for Musk, an ex-ally of US President Donald Trump, who was previously one of the most prominent donors backing Trump.

The Tesla and SpaceX CEO made the announcement Saturday via a post on X. In his message, Musk accused both major parties of contributing to unchecked government spending and corruption, declaring that the country no longer functions as a democracy but as a unified political machine driven by waste and self-interest.

“America is being bankrupted by bipartisan waste and corruption. This is not democracy — it’s a one-party system in disguise,” Musk wrote. “The America Party is formed to give you back your freedom.”

The launch follows a high-profile falling out between Musk and Trump, once political allies. Tensions flared during Musk’s brief stint as head of the Department of Government Efficiency (DOGE), where he pushed for aggressive spending cuts and a reduction in federal workforce policies that clashed with Trump’s expansive domestic budget.

Musk has since been a vocal critic of Trump’s fiscal agenda, especially a recent sweeping spending bill that he warns could drastically increase the national debt. In the wake of the legislation, Musk pledged to oppose any lawmaker who supported the measure, regardless of party affiliation.

Musk announced the July 4 holiday, releasing a poll asking Americans whether they wanted “independence from the two-party (some would say uniparty) system.” According to Musk, the poll showed a 2-to-1 margin in favour of forming a new political movement.

“By overwhelming demand, you want a new party. Now, you have it,” Musk said.