Elon Musk's American Party may support Bitcoin, but still faces third-party pitfalls.

Tesla CEO Elon Musk's rift with President Trump is escalating. On July 5, Musk announced the establishment of the America Party, focusing on Bitcoin and centrist policies. This move is driven by Congress passing the controversial "Great Beautiful Act" of the Trump administration. Musk stated that the act contradicts the government's initial efforts to cut spending. Although Musk hinted that he still supports Bitcoin, the challenges faced by third parties in U.S. history, along with Musk's own political and business hurdles, cast uncertainty over the future of this new party.

Musk's American Party: Advocating for a Position on Bitcoin

Musk's announcement of the formation of the American Party caused a sensation, even eliciting comments from Trump, who stated: "I think it's ridiculous to form a third party... America has always been a two-party system, and I believe that forming a third party will only add to the chaos."

Currently, there is still a lack of sufficient details regarding the party's stance. Aside from Musk vaguely indicating a tendency towards a centrist approach, relaxing regulations, cutting government spending, and supporting Bitcoin, little is known about the party's position. Musk retweeted the suggestions from the Tesla fan group "Silicon Valley Tesla Owners" regarding a potential party platform. This "platform" includes goals for reducing debt while comprehensively reforming the military to make it more high-tech and incorporating artificial intelligence and robotics. It also suggests relaxing regulations on the energy sector, promoting freedom of speech, and supporting "pronatalism" - a political movement focused on the global low birth rate.

As of the time of publication, no official entity or website has announced anything. Musk has asked fans on the X platform where the first U.S. party convention should be held.

The Dilemma of Third Party Politics: The "Duopoly" of American Politics

Although Musk considers himself a pioneer in space exploration, he is not the first person to think of forming a third party in American politics. Many third parties have appeared in American history, but overall they have failed.

Recently, American businessman and former presidential candidate Andrew Yang attempted to break the political duopoly through his centrist, pro-cryptocurrency "Forward Party." Yang has proposed using cryptocurrency as a means to distribute universal basic income.

No political party can expand the two-party system, and observers are not optimistic about Musk's ability to achieve greater success. Colin Anderson, a clinical assistant professor of political science at the University at Buffalo's College of Arts and Sciences, stated: "It is extremely unlikely that a new major party will form. The structure of the American political system tends to favor two effective parties, and that structure would need to change for more parties to have a real chance." Anderson noted that a major party must collapse for a third party to gain any benefit—if Trump leaves the political scene without a successor to continue the Republican Party's "Make America Great Again" (MAGA) movement, this is not an impossible outcome.

The Impact of Politics on Musk's Business and the Limitations of His Political Influence

Tesla owners in Silicon Valley may be excited about the prospects of the third party led by Musk, but the CEO's business partners do not share this view. After Musk announced this decision, James Fishback, CEO of investment firm Azoria, decided to delay the launch of the Azoria Tesla Convexity ETF, stating that it "conflicted with his full-time responsibilities as CEO of Tesla, distracting his attention and energy, making it difficult for him to focus on Tesla's employees and shareholders." He said, "One party not only failed to support Tesla's mission but is actively undermining it."

Musk's political ambitions have also led to a sharp drop in TSL's stock price. As Musk's political involvement continues to rise, and TSL cars become synonymous with support for the Trump administration, TSL's stock price has suffered significant losses over the past year.

In addition, Musk has failed to prove his political influence in the past. Although he is a major donor to the Republican Party, his more direct involvement in the Wisconsin Supreme Court campaign in March 2025 has had little effect. Regardless of Musk's victory or defeat, Bitcoin will continue to thrive, as cryptocurrency analyst Nic Puckrin stated: "The only way for the dollar is down, while the price of Bitcoin will always move in the opposite direction."

Musk's establishment of the American party brings new variables to the political landscape of the United States and may have an indirect impact on the political influence of cryptocurrencies. Although he claims to support Bitcoin, the historical challenges of third-party parties in the U.S., along with Musk's own political and business challenges, make the future of this new party full of uncertainty. However, regardless of the outcome of Musk's political attempts,