Billionaire entrepreneur Elon Musk has announced the launch of a new political party in the United States called the America Party, aiming to challenge the two-party system dominated by Republicans and Democrats.

Musk made the announcement yesterday on his social media platform X, accusing both major parties of unchecked government spending and corruption and claiming that the US no longer functions as a democracy but as a unified political machine driven by waste and self-interest.

The move follows a dramatic fallout between Musk and former ally US President Donald Trump.

Although Musk was born outside the US and is ineligible to run for president, he has not disclosed who will lead the new party. It remains unclear whether the America Party has been formally registered with US election authorities.