Is Elon Musk about to launch a new political party?
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Things are heating up between Elon Musk and Donald Trump again, with Musk threatening to launch a new political party and primary Republican lawmakers over their support for Trump's big beautiful bill.
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In brief:
- Elon Musk has publicly criticised Trump's ‘big beautiful bill’, set toincrease the US deficit by over $3 trillion, arguing it undermines the government spending cuts he worked on through DOGE (Department of Government Efficiency).
- He has announced plans to create "the America Party" if the spending bill passes and has vowed to primary any Congress members who vote for it, using his wealth to run candidates against them.
- Trump has responded by threatening to remove government subsidies and support for Musk's businesses and when asked about potentially deporting Musk, said "I'll take a look at that."
What’s the story?
When one door closes, another one opens.
Elon Musk has turned his back on his political allegiance to Donald Trump and floated creating a new political party dubbed ‘the America Party’.
The duo fell out after Musk publicly criticised Trump’s ‘big beautiful bill’ which will increase the country’s deficit by over $3 trillion.
Musk argues the bill will undo much of the work he did leading Doge (Department of Government Efficiency) which worked to reduce government spending.
“If this insane spending bill passes, the America Party will be formed the next day,” he posted on his social media platform X.
Musk had gone silent for a few weeks following the initial fallout with Trump, in which he accused Trump of being in the Epstein files, documents relating to the sex offender Jeffrey Epstein.
“Elon Musk went quiet - he’s got noisy again,” Jon Sopel says on The News Agents.
He has now threatened to unseat members of congress who vote in favour of the President’s ‘big beautiful bill’ by running candidates against anyone who voted for it.
“That's a big threat when you've got as much money as Elon Musk has got,” Jon says.
Musk has said any member of congress who campaigned on reducing government spending and is now intending to vote in favour of the bill should “hang their head in shame”.
“They will lose their primary next year if it is the last thing I do on this Earth,” he added.
Could Elon Musk create a political party to rival the Republicans?
How has Trump responded?
When asked by a journalist on the White House lawn today (July 1) if he would consider deporting Elon Musk, Trump responded; “I’ll take a look at that.”
“He’s upset he’s losing his EV mandate, but he could lose a lot more than that,” Trump added.
“What is always unmissable is how personal these rows get,” Emily Maitlis says, referring to Trump’s threats of taking away government funding that benefits Musk’s many businesses.
On Truth Social, Trump said that Musk has received more subsidies than “any human being in history, by far.”
He went on to threaten to remove support for rocket launches, satellites and electric car production - essentially, all of Musk’s business enterprises.
“Our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” he said.
“In other words, he's setting his dogs on Elon Musk,” Emily says.
“Every bit of federal money that was coming Musk's way now sounds like it's going to dry up. He's going to be dodged.”
What’s The News Agents’ take?
“There are lots of people in America right now who are looking at what Trump is trying to do with this big beautiful bill, who might actually agree with what Musk is saying,” Emily says.
The bill includes tax cuts for individuals and corporations and a huge $1tn (£741bn) in cuts to benefits, including Medicaid, for low-income families, amongst other things.
Jon describes the bill as “Robin Hood in reverse”.
“It's tax cuts for the wealthiest and welfare cuts for the poorest to pay for it,” he says.
“It's not that Elon Musk is concerned about those who will be left particularly vulnerable. It's because of the rise in the deficit and the consequences that could have for the US economy.”
In a process known as ‘vote-a-rama’, the US Senate has been holding a marathon voting session on the bill, with senators voting separately as they argue for or against amendments.
Republicans can only afford three defections for the vote to pass - with two senators already saying they will vote against it.
If Musk follows through and does set up a rival political party to punish those GOP members who vote in favour of it, Jon argues it will be a “threat and a danger” to the Republicans.
“He has donated about $300 million in the past to the Republicans in the 2024 election. If he decided to basically sniper-off everyone that voted for the bill, he could throw a lot of money at whoever was primarying them,” Emily points out.
But, will a lot of money be enough to frighten off those who do want to support the bill?
Jon thinks it's possible
“I would imagine there'll be a good many senators and even more congressmen and women who - frightened though they are of Donald Trump - are also frightened about the financial firepower that Elon Musk can bring to bear to their political careers.”
Listen to the latest episode of The News Agents.
