Musk announced the establishment of the "America Party" or his participation in the midterm elections next year

(Washington, D.C.) Billionaire Elon Musk announced on Saturday the establishment of a new political party, the "America Party", to challenge what he calls the "one-party system" in the United States. This new party may participate in next year's midterm elections, striving to win a few seats in both the House of Representatives and the Senate, thereby gaining sufficient influence to determine the success or failure of legislation in a Congress where the Republicans hold only a narrow advantage.

Musk posted on the social media platform X on Saturday (July 5th), announcing: "You requested the establishment of a new political party at a ratio of 2 to 1, and you got it..." Today, the America Party was established to restore your freedom.

The day before, Musk launched an online vote asking American netizens if they wanted to break away from the "two-party system (some say it's a one-party system) that has dominated American politics for about two centuries and establish a new political party." More than 1.2 million people participated in the voting, and approximately 65% chose "Yes".

Last year in the general election, Musk spent a huge sum of money to campaign for Trump and other Republican candidates. After Trump was elected president, he was appointed to lead the Department of Government Efficiency. But after Musk stepped down as a government special employee at the end of May, his relationship with Trump deteriorated sharply.

Musk pointed out that the "Big and Beautiful" tax and spending bill vigorously promoted by Trump has significantly increased the fiscal deficit and is a "disgusting" bill. Trump said Musk was "crazy" because the bill stopped providing tax credits for electric vehicles and threatened to cancel federal subsidies for Musk's companies, even considering deporting him. Musk was born in South Africa and became a US citizen in 2002.

In a post on Saturday, Musk said that the United States is going bankrupt due to waste and corruption. When asked what made him shift from an ally of Trump to a critic, Musk responded on X platform: "The deficit has increased from the already crazy $2 trillion during the Biden era to $2.5 trillion." This will bankrupt the country."

Trump signed to implement the "Big and Beautiful" Act on Friday (the 4th). Musk had previously threatened to form a new political party to challenge the Republican lawmakers who voted in favor of the bill.

Musk said that this new party might go all out to run for two or three Senate seats and eight to ten House of Representatives seats in the midterm elections next year, which would give it a decisive role in controversial legislation.

It remains to be seen how much influence the US Party will have on next year's midterm elections and the 2028 presidential election. Analysis suggests that although Musk has vast financial resources, establishing a political party still requires him to confront other thorny obstacles, including complex laws in various states.

CNN pointed out that although the two-party alternating governance system in the United States has been widely criticized, no third party has been able to shake up this situation so far. In last year's election, the Liberal Party, the Green Party and the People's Party attempted to challenge Trump and the Democratic candidate Harris, but all in vain.

Analysts also question whether Musk is willing to make a long-term investment in the US Party or merely treat it as a face-saving project.

Matthew Mokhefi-Ashton, a lecturer in politics and international relations at Nottingham Trent University in the UK, pointed out in a commentary that since Musk was not born in the US, he cannot run for president, which means he has to find a leader for his new party, and Musk seems not good at cooperating with others.

Mohfei-ashton wrote: "It is not impossible to establish a third party, but it will be difficult to succeed unless there is a political earthquake in the United States."

As a business leader, Musk also faces resistance from investors. After he announced the founding of the American Party, investment firm Azoria Partners promptly postponed the listing date of Tesla's exchange-traded fund (ETF). This ETF was originally scheduled to be listed next week.

Azoria CEO James Fishback wrote on X platform on Saturday: "I urge the board to meet immediately and ask Musk to explain his political aspirations and assess whether these aspirations align with his full-time duties as Tesla CEO."