Written by: Wenser (@wenser2010)
No one expected that Musk was serious about forming a political party!
Just yesterday, Musk referenced the previous voting results on the X platform and stated that "the American Party is established," with the slogan "Returning the freedom of the people to the people," directly targeting the current ruling party in the U.S.—the Republican Party; Trump did not hold back either, bluntly stating that Musk was "off the rails" and that his "party formation behavior is absurd." This marks a renewed escalation in the struggle following the recent easing of tensions in the "Trump vs. Musk" situation.
Odaily Planet Daily will briefly outline Musk's party formation and Trump's attitude towards this matter in this article, and explore the potential implications of this event.
Trump Signs New Bill in Response, Musk's Party Formation as a Counterattack
On July 5, Beijing time, U.S. President Trump officially signed the “Big and Beautiful” tax and spending bill, making it effective.
The U.S. House of Representatives passed the "Big and Beautiful" bill, promoted by President Trump, with a vote of 218 in favor and 214 against on the afternoon of July 3. The bill has been controversial due to its cuts to federal aid, increase in long-term debt, and tax reductions for the wealthy and large corporations. Two Republican representatives voted against the bill that day. The Senate had already passed the bill on July 1. This was the direct trigger for Musk's party formation.
Conflict Focus: The "Big and Beautiful" Bill Affects Tesla's New Energy Subsidy Cake
It is understood that the core content of the "Big and Beautiful" bill includes tax cuts, spending cuts, and policy shifts, particularly in terms of spending cuts, which directly impacted the "benefit cake" of Tesla, Musk's flagship company.
On one hand, the bill signed by Trump focuses on stimulating consumption, namely permanently extending the 2017 Trump tax cuts and adding consumer tax incentives; on the other hand, it aims to reduce spending by cutting new energy subsidies and social welfare expenditures, with an estimated funding gap of about $500 billion to be filled by systematically abolishing key incentives such as clean energy and electric vehicle tax credits in the Inflation Reduction Act (IRA) and significantly cutting federal social welfare spending (such as Medicaid, food stamps, etc.).
This also marks a shift in the U.S. government's economic policy direction, from the previous IRA model of "government guidance + industrial investment" (such as targeted support for new energy and semiconductors) to a "market-driven + consumption stimulation" model—relying on tax cuts to unleash individual and corporate vitality, with consumption rather than government investment as the core growth engine.
It is important to note that Tesla has been able to maintain its leading position in the global automotive industry precisely because of new energy subsidies and carbon emission business; the "Big and Beautiful" bill effectively cuts off this financial lifeline, and as Tesla's largest shareholder, Musk certainly cannot ignore it.
The Story of Musk's Party Formation: In the Name of the People, Protecting Personal Interests
On July 4, American Independence Day, Musk once again launched a poll on the X platform, asking users, "Should we create the American Party?"
Similar to how Trump created Truth Social out of dissatisfaction with his social media account being banned and managed, Musk naturally achieved the desired result on his privatized X platform—the final voting results showed a total of 1,248,856 votes; approximately 65% voted in favor of forming a party, while about 35% opposed it.
A tweet that may go down in history
In the early hours of July 6, Beijing time, Musk referenced the previous voting tweet on the X platform stating, "When it comes to bankrupting our country through waste and corruption, we live in a one-party state, not a democracy. Today, the American Party is established to return your freedom to you." In response to someone asking why Musk's attitude towards Trump shifted from support to criticism, Musk responded, "The deficit will increase from the already insane $2 trillion during Biden's presidency to $2.5 trillion. This will bankrupt the country." His words clearly reflect his intention to act for the country and the people.
Thus, in the name of the people, Musk has launched his "interest defense war."
After the news of Musk's party formation spread, reactions varied.
Musk's Party Formation: Trump, Investment Institutions, U.S. Treasury Secretary, and the Market Respond
As soon as the news of the party formation emerged, Tesla, as the focal point of the storm, quickly became the "market scapegoat."
Tesla (TSLA.O) saw its stock drop over 7% in after-hours trading. As of the time of writing, Tesla's stock price was reported at $315.35, with a market value of approximately $988.14 billion; the stock price has dropped nearly 35% from its previous high of $488.
Trump subsequently made several statements: first, he stated on social media, "I feel very sad to see Musk completely 'off the rails' over the past five weeks, basically becoming a derailed train. He even wants to form a third party, although this has never succeeded in the U.S.—this system doesn't seem designed for them. The third party is best at creating complete destruction and chaos." He also mentioned, "When Musk was undoubtedly fully supporting me, I asked him if he knew I would terminate the electric vehicle authorization, and he said he had no objection—I was surprised! Additionally, Musk wanted one of his good friends to manage NASA, but I was surprised to find out he is a well-connected Democrat who has never donated to Republicans. Musk might be too." Trump added that it was inappropriate to let Musk, who has interests in the space field, choose NASA leaders. Later, before boarding Air Force One in New Jersey, he told reporters, "I think forming a third party is absurd. Establishing a third party will only increase chaos; he can have fun, but I think it's ridiculous."
U.S. Treasury Secretary Yellen also rarely commented on the matter, stating that Musk's company board might be dissatisfied with his political activities; and reminded Musk to focus on business rather than politics. The implication is that as a businessman, Musk should not meddle in politics or attempt to enter the political arena. Musk also sarcastically responded to Yellen's previous criticism of his public opinion poll in the DOGE sector, saying, "Treasury Secretary Yellen is a puppet of Soros. She is a political science major who can't even learn math. A year ago, my poll results were very positive, which is why Trump values me so much."
On the other hand, the investment company Azoria, which was set to launch the Tesla-targeted ETF "Azoria Tesla Convexity ETF" last week, announced on Saturday that it would delay the launch of the fund. It is understood that the ETF was scheduled to invest in Tesla's stocks and options, providing investors with financial products related to the electric vehicle giant. However, Musk's political actions led Azoria to believe the timing was unstable, prompting them to postpone the listing plan.
The Aftermath of Musk's Party Formation: The History of Third Party Failures, the Possibility of Embracing BTC, and the Fallout of Meme Coins
After Musk officially announced the party formation, the related topic briefly surged to the top of Baidu's trending searches, but analysts believe that even someone as wealthy and influential as Musk, who has demonstrated undeniable mobilization ability online and has loyal, high-profile, and influential followers, still faces deep-rooted obstacles in forming a "third party."
The Record of Third Party Failures is Abundant
Public reports indicate that historically, "third parties" in the U.S. have struggled to achieve political success.
American businessman Ross Perot received nearly 19% of the popular vote in the 1992 election but failed to win a single electoral vote.
Ralph Nader was labeled a "spoiler" in the 2000 election.
The most recent attempt, the "Forward Party" founded by Chinese-American entrepreneur and former presidential candidate Andrew Yang, gained attention but struggled to gain traction.
Additionally, according to U.S. law, the establishment of a party eligible to participate in elections requires a complex certification process, which must first hold a caucus or convention to elect temporary officials, among other steps. Although Musk posted yesterday asking, “When and where should we hold the first convention of the American Party?”, he today stated that the circulating Federal Election Commission (FEC) filing documents for the new party America Party (AMEP) are false and that he has reported this to the FEC, indicating that the American Party is still in the planning stage.
Will the American Party Embrace BTC? Yes
Although the American Party has not been officially registered, Musk has already set an example regarding the party's attitude towards cryptocurrency.
When community users asked whether the American Party would embrace BTC, he replied, "Fiat currency has no hope, so of course (we will embrace BTC)." This ignited market enthusiasm for buying BTC.
Musk's statement: Embrace BTC, yes!
After PVP, Meme Coins in Disarray
Following Musk's announcement of the party formation, the Meme coin market reacted swiftly, initiating a series of PVP battles.
According to information from GMGN, a series of Meme coins with names like AP (initials of American Party), AMEP, America, america, etc., have flooded various ecosystems like ETH, SOL, and BSC, but after experiencing yesterday's frenzied speculation, most Meme coins are now in disarray, with market values halved or even more.
AP has the highest market value
Conclusion: There Are No Permanent Friends, Only Permanent Interests
Under Musk's tweet announcing the establishment of the "American Party," a user asked whether his new party would participate in the 2026 midterm elections or the 2028 presidential election, to which Musk replied, "Next year" (i.e., 2026). Although whether this news can be verified in the future remains uncertain, the emergence of the American Party undoubtedly serves as another example of the escalation of the "Trump vs. Musk" conflict.
In the unpredictable political arena, Musk and Trump have validated a truth through their personal experiences: there are no permanent friends, only permanent interests.
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