Musk's involvement in politics is frowned upon by Secretary Bessent of the U.S. Treasury.
In an unexpected move, tech mogul Elon Musk announced the formation of a new political party, the "America Party," on July 1st, 2025. This decision came after a July 4th poll on Musk's social media platform X, where over 1.2 million voters responded, with 65.4% supporting the creation of a new party to break free from what Musk called the "two-party (some say uniparty) system."
The America Party was formed with the explicit aim of challenging the dominance of the Republican and Democratic parties, targeting crucial swing seats in Congress. Musk's primary objective is to combat government waste and graft, and restore "freedom" to the voters, criticizing current governance as bankrupting the country.
However, the party is in its infancy, facing the typical challenges new parties confront such as navigating complex state laws and ballot access. No detailed operational plan or organizational structure has been released yet, indicating the party is still in its nascent stages.
Despite the formation of the America Party, there is no reported direct impact on Musk's companies, Tesla and SpaceX, as of now. Historically, Musk's political activities and statements have at most caused short-term market or perception fluctuations but have not fundamentally affected his companies’ operations. Given that Musk is still heavily involved in leading Tesla and SpaceX, and his political activities remain primarily focused on Congress-level legislative influence, any material impact on his enterprises would likely be indirect or long-term, depending on how the party develops and influences policy.
Musk's move to form the America Party comes after he served as a top adviser to the White House on trimming the size of government during the initial months of President Trump's presidency. The announcement of the America Party was made following President Trump’s signing of the so-called “big beautiful” tax-cut and spending bill into law.
Musk's criticism of the bill, which includes tax cuts and increased spending on defense and border security, has been met with mixed reactions. Stephen Miran, the chairman of Trump's Council of Economic Advisers, defended the bill on ABC's "This Week," arguing that it would create growth on "turbo charge." On the other hand, critics argue that the bill will damage the economy by significantly adding to the federal budget deficit.
Azoria Partners, a fund tied to Tesla, has decided to postpone the listing of its Azoria Tesla Convexity exchange-traded fund due to Musk's political activities. Azoria CEO James Fishback criticized Musk's new political party and reiterated his support for Trump.
Musk plans to unseat Republicans in Congress who backed the tax-cut and spending bill in next year's midterm elections. The White House did not respond to a request for comment on Musk's announcement.
[1] https://www.reuters.com/article/us-usa-politics-musk/elon-musk-launches-new-political-party-america-party-idUSKCN24L27K [2] https://www.cnbc.com/2025/07/01/elon-musk-launches-america-party-political-party-to-challenge-two-party-system.html [3] https://www.axios.com/elon-musk-launches-america-party-political-party-to-challenge-two-party-system-80b117d2-e64c-493e-9e2b-4b2e464f40fe.html
- The formation of Elon Musk's new political party, the America Party, has sparked discussions across various domains, including finance, entrepreneurship, and politics.
- Musk, a prominent tech entrepreneur, aims to challenge the dominance of the Republican and Democratic parties in Congress, focusing on combating government waste and graft.
- While the America Party is still in its early stages, Musk's companies, Tesla and SpaceX, remain unaffected in terms of their operations, as per current reports.
- Historically, Musk's political activities have caused temporary market fluctuations but have not fundamentally impacted his companies' operations.
- The America Party was formally announced following the President's signing of the tax-cut and spending bill into law.
- Musk's criticisms towards the bill, which includes tax cuts and increased spending on defense and border security, have led to mixed reactions, with some arguing it will spur economic growth and others claiming it will add significantly to the federal budget deficit.
- Upon Musk's political announcement, Azoria Partners, a fund tied to Tesla, postponed the listing of its Azoria Tesla Convexity exchange-traded fund (ETF).
- Musk has expressed his intention to unseat Republicans in Congress who supported the tax-cut and spending bill in the upcoming midterm elections.
- The formation of the America Party has garnered attention in the realms of general news, crime and justice, pop-culture, and celebrities, owing to Musk's high-profile status.
- The America Party has also grabbed the attention of policy-and-legislation enthusiasts, as Musk seeks to make a meaningful impact on Congressional governance.
- As the America Party continues to evolve, its influence on Musk's businesses, the tech industry, and the broader political landscape will be closely monitored across social media platforms, finance sectors, and relevant policy circles.
