Author: Wall Street News
Musk officially announces the establishment of the "American Party," targeting key seats in the 2026 midterm elections.
According to CCTV News, on July 5th local time, American entrepreneur Elon Musk posted on the social media platform X, stating that the "American Party" was established that day to restore freedom to the people.
This development comes amid intense disagreements between Musk and Trump over the "Big Beautiful Bill". On June 30th, Musk strongly criticized the bill and stated that if the bill passed, he would establish the "American Party" the next day. The bill was signed into effect by Trump on July 4th.
Hours before the bill was signed, Musk initiated an online poll asking whether the "American Party" should be established, with approximately 1.249 million netizens participating, and 65.4% expressing support. Based on this result, Musk officially announced the new party's establishment on July 5th.
This statement directly challenges Trump's authority within the Republican Party and marks a complete breakdown of their political alliance.
Musk also hinted to netizens that the "American Party" will participate in the 2026 midterm elections, providing a time window for fundraising, organizational structure, and candidate screening.
According to Federal Election Commission regulations, new parties do not need to officially register with the commission unless their fundraising or expenditures exceed a specific threshold. Analysts point out that with Musk's financial resources, funding will not be a constraining factor.
Some netizens speculate that the "American Party's" political platform may include reducing debt expenditure, promoting AI technology development, and comprehensive deregulation, to which Musk replied: "Exactly!"
Plan to Leverage Key Seats in Congress
Wall Street News previously mentioned that on the 4th, Musk revealed during the netizen poll that the "American Party" will 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 differs significantly from traditional parties' attempts to win a majority of seats. Musk aims to become a "critical minority" in Congress, influencing policy-making by playing a decisive role in key votes.
Musk noted that in the current situation where congressional seat distribution is extremely close, this precise strategy is sufficient to influence major legislation and ensure "truly representing the people's will".
Fiscal Dispute with Trump: The Trigger for Musk's Shift
The background of Musk's announcement to establish a new party is his intense conflict with Trump over fiscal policy.
The recently signed "Big Beautiful Bill" with a $3.3 trillion spending scale was publicly criticized by Musk, who claimed the bill would exacerbate America's debt crisis, and threatened to fund primary opponents of any congressional members supporting the bill.
Previously, Musk had attempted to promote a $190 billion government expenditure reduction through the Doge department, but according to analysis by a third-party non-profit organization, his actions might have also caused $135 billion in taxpayer losses.
Trump was not to be outdone, openly warning Musk that opposing his agenda would come at a personal cost.
He posted on his social media platform Truth Social, hinting that Musk might have to close his companies and return to South Africa without government subsidies, and even suggested "possibly using Doge on Musk" as a counterattack. Trump also told the media that Doge could be the "monster that must go back to devour Musk".
This recurring "Trump-Musk" mud-slinging drama highlights the rapid transformation of their relationship from cooperation to opposition and provides a direct trigger for the establishment of the "American Party".
