Written by: Wall Street Watch
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 stated on the social media platform X that the 'American Party' was established on that day to restore freedom to the people.
This development comes as Musk and Trump have intense disagreements over the 'Great Beautiful Act'. On June 30, Musk sharply criticized the act and stated that if it passed, the 'American Party' would be established the next day. The act was signed into effect by Trump on July 4.
Hours before the signing of the act, Musk launched an online poll to consult whether the 'American Party' should be established, with about 1.249 million netizens participating, 65.4% of whom expressed support. Based on this result, Musk officially announced the establishment of the new party on July 5.
This statement directly challenges Trump's authoritative position within the Republican Party and marks the complete rupture of their political alliance.
Musk also hinted to netizens that the 'American Party' would participate in the 2026 midterm elections, providing a time window for fundraising, organizational structure, and candidate selection.
According to the Federal Election Commission regulations, new political parties do not need to formally register with the Federal Election Commission unless their fundraising or expenditures exceed a specific threshold. Analysis indicates that with Musk's financial resources, funding will not be a limiting factor.
Some netizens speculate that the political agenda of the 'American Party' may include reducing debt spending, promoting AI technology development, and comprehensive deregulation, to which Musk replied: 'That's right!'
Plans to leverage a few key seats to influence congressional decisions
Wall Street Watch previously mentioned that on the 4th, when Musk initiated an online poll, he revealed that the 'American Party' would initially focus on 2-3 Senate seats and 8-10 House districts, attempting to become a decisive force in Congress through these key seats.
This strategy is starkly different from traditional parties attempting to win a majority of seats. Musk aims to become the 'critical minority' in Congress, influencing policy-making by playing a decisive role in key votes.
Musk pointed out that in the current extremely close distribution of congressional seats, such a precise strategy is sufficient to influence significant legislation and ensure 'true representation of the people's will'.
The financial conflict with Trump: The trigger for Musk's shift
The background of Musk announcing the establishment of a new political party is his intense conflict with Trump over fiscal policy.
Musk publicly criticized the $33 trillion spending scale 'Great Beautiful Act' recently signed by Trump, stating that it would exacerbate the U.S. debt crisis and threatening to fund primary challengers against any congressional member supporting the act.
Previously, Musk had pushed for a $190 billion reduction in government spending through the DOGE department, but analysis from a third-party nonprofit organization suggests that his actions may have also led to a loss of $135 billion for taxpayers.
Trump, not to be outdone, openly warned Musk that opposing his agenda would come with personal costs.
He posted on his own social platform Truth Social, suggesting that Musk might shut down his company and return to South Africa if there were no government subsidies, even mentioning 'possibly using Doge against Musk' as a counterattack. Trump also told the media that DOGE might be the 'monster that must go back to devour Musk'.
This re-enactment of the 'Trump-Musk' feud highlights the drastic shift in their relationship from cooperation to opposition, providing a direct catalyst for the establishment of the 'American Party'.
