UPDATED: Elon Musk threatens to form new party in US

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The world’s richest man, Elon Musk, has threatened to sponsor the formation of a new party in the United States to challenge the two dominant parties.

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The Democratic Party and the Republican Party have dominated US elections for decades and have produced almost all American presidents.

Mr Musk spoke in continuation of his opposition to the current US President Donald Trump’s economic bill, which has already passed in the House of Representatives.

“If this insane spending bill passes, the America Party will be formed the next day, ” Mr Musk wrote on his X platform. “Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”

Messrs Musk and Trump were allies, and the billionaire contributed financially to the president’s election and those of other Republican candidates.

However, their relationship went south a few weeks ago, partly due to Mr Trump’s economic bill.

The bill, now in the Republican-controlled Senate, is strongly opposed by Democratic lawmakers who argue that it will provide tax cuts for the super rich, cut healthcare and Medicaid for over one million poor Americans and slash school feeding for millions of children from poor homes.

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Mr Musk, however, opposes the bill because he says it would increase the US debt ceiling by about five trillion dollars.

In his series of late Monday posts attacking the bill, Mr Musk also vowed to sponsor challengers to Republican lawmakers who support the bill.

He, however, gave no indication of supporting Democratic lawmakers, weeks after President Trump vowed to go after his interests if he finances the Democratic party.

He also accused Republican leaders of hypocrisy, saying, “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!.”

Trump responds

The US president has also fired back at the tech billionaire, hinting that the US could consider withdrawing some of the American subsidies the CEO enjoys.

Mr Trump suggested the Department of Government Efficiency (DOGE), previously led by Mr Musk, should now turn its attention to examining the subsidies received by Mr Musk’s companies. “Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!” He said in a post on Truth Social,

He also said, “Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one.”

“Elon may get more subsidies than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”

READ ALSO: Trump says Musk relationship over, warns of ‘serious consequences’ if he funds Democrats

The fallout of both allies came after the introduction of the “big beautiful bill.” Mr Musk, in recent times, has become one of the most vocal opponents of Mr Trump’s fiscal policies.

Both men traded words over the bill last month, with Mr Musk claiming credit for helping Mr Trump win reelection.

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

But he later retracted his statement, saying, “I regret some of my posts about President Trump last week. They went too far.”

Monday’s tirade, however, shows that both men are far from resolving their differences.