New York: Elon Musk, an ex-ally of US President Donald Trump, has announced the creation of a new political party in the United States. The tech billionaire aims to challenge what he describes as the country's "one-party system."

According to TRTworld.com, Musk, who is the world's richest person and was Trump's biggest political donor in the 2024 election, had a significant falling out with the president. This rift followed Musk's leadership in the Republican effort to reduce spending and cut federal jobs as the head of the Department of Government Efficiency.

Musk shared his perspective on the current political system, stating, "When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy." This statement was posted on X, a social media platform that Musk owns.

The dispute between Trump and Musk resurfaced last month when Trump urged Republicans in Congress to support his extensive domestic agenda through the One Big Beautiful Bill. Musk strongly opposed the legislation and criticized its Republican supporters for endorsing what he termed "debt slavery."

In response, Musk committed to establishing a new political party aimed at challenging lawmakers who support increased federal spending despite past promises to reduce it. Experts predict the bill will add $3.4 trillion to the US deficit over the next decade.

Following Musk's criticism of the spending bill, which was eventually passed and signed into law, Trump threatened retaliatory actions against Musk, including the potential deportation of the tech mogul and the withdrawal of federal funds from his businesses. When questioned by reporters about deporting Musk, who became a US citizen in 2002, Trump replied, "We'll have to take a look."