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Elon Musk is forming a new political party called the America Party, following his disagreement with President Trump over the president’s recent tax cuts law, reported the Associated Press. Musk earlier threatened to form a third party if the "insane spending bill passes."

On Sunday, Trump dismissed Musk's proposition as "ridiculous" when asked by reporters, citing the Republican Party's "tremendous success."

Trump criticized third parties, stating they "add to confusion" and have "never worked" in the two-party system.

New political parties often struggle against Republicans and Democrats. However, Musk spent at least $250 million supporting Trump in 2024, which could influence the 2026 Congressional elections if he invests significantly.

Last month, the tech billionaire threatened to oust all Congress members who voted for Trump's "disgusting abomination" tax bill, warning it would increase the federal deficit.

"The Republican Party has a clean sweep of the executive, legislative and judicial branches and STILL had the nerve to massively increase the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS," Musk said Sunday on X.

His criticism of the bill and formation of a political party reverse his May stance, when, as his time in the White House ended, the SpaceX and Tesla head said he'd spend "a lot less" on politics.

Treasury Secretary Scott Bessent, who clashed with Musk while running DOGE, said the department's "principles" were popular, but "Elon was not."

"I imagine that the board of directors did not like this announcement… and will be encouraging him to focus on his business activities, not his political activities," he told CNN in an interview.

Musk's feud with the president, fueled by "America Party" feedback, could impact his businesses' government contracts and Tesla’s market performance.

Since Musk’s X post, multiple political parties with names like "American Party," "DOGE," or "X," or listing Musk as an affiliate, have appeared in the Federal Election Commission database.

The status of his political party remains unclear, according to the Associated Press.