Musk announces the establishment of the "American Party" to "avoid bankruptcy of the United States"

Written by: Wall Street News

Musk officially announced the establishment of the "American Party", targeting key seats in the 2026 midterm elections.

According to CCTV News, on July 5 local time, American entrepreneur Elon Musk posted on the social media platform X that the "American Party" was established that day to give freedom back to the people.

This development comes at a time when Musk and Trump have a fierce disagreement over the "Big Beautiful Bill". On June 30, Musk fiercely criticized the bill and said that if the bill passes, the "American Party" will be established the next day. The bill was signed into law by Trump on July 4.

A few hours before the bill was signed, Musk launched an online vote to ask whether the "American Party" should be established. About 1.249 million netizens participated in the vote, and 65.4% expressed support. Based on this result, Musk officially announced the establishment of the new party on July 5.

This statement directly challenges Trump's authority within the Republican Party and also marks the complete breakdown of the political alliance between the two.

Musk also hinted to netizens that the "American Party" will participate in the 2026 mid-term elections, which leaves a time window for it to prepare funds, organizational structure and candidate screening.

According to FEC rules, new political parties do not need to formally register with the FEC unless their fundraising or expenditures exceed certain thresholds. Analysts point out that with Musk's financial resources, funding will not be a constraint.

Some netizens speculated that the political platform of the "American Party" may include reducing debt spending, promoting the development of AI technology, and comprehensively relaxing regulations. Musk responded: "That's right!"

Plan to use a few key seats to influence congressional decisions

Wall Street Journal previously mentioned that on the 4th, when Musk initiated a netizen vote, he revealed that the "American Party" will initially focus on 2-3 Senate seats and 8-10 House of Representatives districts, trying to become a decisive force in Congress through these key seats.

The strategy is very different from traditional party attempts to win a majority of seats. Musk is targeting the "critical minority" in Congress to influence policy by playing a decisive role in key votes.

Musk pointed out that with the current distribution of seats in Congress extremely close, this precise strategy is enough to influence major legislation and ensure that "the will of the people is truly represented."

The financial dispute with Trump: the trigger for Musk's turn

The background of Musk's announcement of the establishment of a new political party is his fierce conflict with Trump over fiscal policy.

Musk publicly criticized the $3.3 trillion "Big Beautiful Bill" signed by Trump recently, saying the bill would exacerbate the US debt crisis and threatening to fund the primary election opponents of any member of Congress who supports the bill.

Previously, Musk had pushed for $190 billion in government spending cuts through the DOGE sector, but according to analysis by a third-party nonprofit organization, his actions may also result in a loss of $135 billion for taxpayers.

Trump, in turn, publicly warned Musk that opposing his agenda would come at a personal cost.

He posted on his own social platform Truth Social, suggesting that Musk might close the company and return to South Africa without government subsidies, and even mentioned that "Doge might be used again on Musk" to fight back. Trump also told the media that DOGE might be "a monster that must go back to devour Musk."

The re-enactment of the "Trump-Maldives" drama highlights the drastic change in their relationship from cooperation to confrontation, and also provided a direct fuse for the establishment of the "American Party".