WASHINGTON, July 5 (Reuters) - The dispute between Republican President Donald Trump and his main campaign financier Elon Musk took another fractious turn on Saturday when the space and automotive billionaire announced the formation of a new political party, saying Trump's "big, beautiful" tax bill would bankrupt America.

Elon Musk said he’s carrying out his threat to form a new political party after his fissure with President Donald Trump, announcing on social media that he would form the America Party in response to the president’s sweeping tax cuts law.

Musk left his post as head of Trump's Department of Government Efficiency (DOGE) when his special government employee contract ended May 30. While it was initially said that he would continue on in an advisory role, his fierce criticism of Trump's "Big Beautiful Bill" made the departure seem much more final.