On July 5, 2025, Elon Musk, the CEO of Tesla, announced on the social media platform X the establishment of a new political party, the "American Party", claiming that he would "return freedom to the people". This move directly stems from its intense conflict with the Trump administration over the "Big and Beautiful" tax and spending bill. The bill, which eliminates the tax credit for electric vehicles (expected to cost Tesla $1.2 billion annually), while retaining subsidies for traditional energy, was criticized by Musk as a "financial suicide".
The enterprises under Musk are highly dependent on government policy support. In the first quarter of 2025, Tesla's net profit had plummeted by 71% due to policy changes. As a key financial backer of Trump in 2024 (donating 290 million US dollars), he was betrayed by policies, which reflects the divergence of interests between tech capital and traditional political parties.
On the surface, it seems that American billionaire Elon Musk does keep his word. He had previously threatened that if the "Big and Beautiful" tax and spending bill was passed, he would immediately form a new political party to further pressure the Trump administration. Immediately after the bill was passed, Musk posted on social media that he had established the "America Party". However, we need to see the essence of this move itself. At present, it is still about boosting popularity rather than the establishment of a new political party.
Backed by a net worth of 400 billion US dollars, Musk has adopted a "key minority" strategy, targeting 2-3 Senate seats in the 2026 midterm elections. He has influenced legislation through the role of a "king" and threatened to fund his primary rivals to attack supporters of the Big and Beautiful Act, dividing the Republican vote base.