Interpretation: Musk establishes the "American Party," Trump sharply criticizes it as "utterly ridiculous"

2025-07-07 08:47:19

Original | Odaily Odaily Daily (@OdailyChina)

Author｜Wenser（**@wenser 2010 ）

No one expected that Musk was actually serious about forming a party!

Just yesterday, Musk referenced the previous voting results on the X platform and stated, "Establishing the American Party," with the slogan "Returning the people's freedom to the people," directly targeting the current ruling party in the United States—the Republican Party; Trump also did not hold back, bluntly saying Musk's behavior is "out of touch" and "absurd to the extreme." This is also a renewed escalation of the struggle following the recent easing of the "Terminator battle" situation.

Odaily will provide a brief overview of Musk's party formation and Trump's attitude towards this matter in this article, and explore the potential impacts of this event.

Trump Signs New Bill in Direct Response, Musk's Party Formation Counterattack

On July 5th, Beijing time, U.S. President Trump officially signed the "Big and Beautiful" tax and spending bill, making it effective.

On July 3, 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. The bill has been controversial due to federal aid cuts, increased long-term debt, and tax cuts for the wealthy and large corporations. Two Republican representatives voted against the bill that day. The bill was passed by the Senate on July 1. This was the direct catalyst for Musk's party formation.

The focal point of the contradiction: The "Big and Beautiful" bill has shaken the subsidy cake for Tesla's renewable energy under Musk.

According to reports, the core content of the "Big and Beautiful" bill includes tax cuts, spending reductions, and policy shifts. Especially in terms of spending cuts, it directly affects the "benefit cake" of the new energy subsidies for Tesla, a pillar enterprise under Musk.

On one hand, the bill signed by Trump focuses on stimulating consumption, namely the permanent extension of the 2017 Trump tax cuts, adding new consumer tax incentives; on the other hand, it aims to reduce expenditures by cutting new energy subsidies and social welfare spending, among which approximately $500 billion in funding gaps will be addressed through the systematic repeal of key incentives such as clean energy and electric vehicle tax credits in the Inflation Reduction Act (IRA) and significant cuts to federal social welfare spending (such as Medicaid, food stamps, etc.).

This also marks a shift in the economic policy direction of the U.S. government, from the previous "government-led + industrial investment" model of the IRA Act (such as targeted support for new energy and semiconductors) to a "market-driven + consumption stimulus" model—relying on tax cuts to unleash the vitality of individuals and businesses, with consumption rather than government investment as the core growth engine.

It is important to know that Tesla has been able to maintain its leading position in the global automotive industry largely due to new energy subsidies and carbon emission trading. The "Big and Beautiful" bill is equivalent to directly cutting off this financial lifeline, and as Tesla's largest shareholder, Musk certainly cannot ignore this.

The history of Musk's party establishment: In the name of the people, to safeguard personal interests.

On July 4th, on American Independence Day, Musk launched a poll on the X platform again, asking X platform users "Should a United States Party be created?"

Just like Trump, who was dissatisfied with his social media account being banned and managed by the platform, Musk naturally achieved the results he wanted on his privatized X platform—the final voting results show a total of 1,248,856 votes; about 65% of the votes support the establishment of a party; about 35% of the votes oppose the establishment of a party.

A tweet that may be recorded in history.

On July 6th, Beijing time, Musk posted on the X platform, citing a previous voting tweet, stating, "When it comes to bankrupting our country with waste and corruption, we live in a one-party state, not a democracy. Today, the American Party was founded to give your freedom back to you." In response to someone raising the question of "why Musk's attitude towards Trump shifted from support to criticism," Musk replied, "The deficit will increase from the already insane $20 trillion during Biden's presidency to $25 trillion. This will bankrupt the country." His words reflect a clear intention for the country and the people.

From now on, in the name of the people, Musk has embarked on his own "war for interests."

After the news of Musk's party formation spread, reactions from all sides varied.

Musk establishes a party, Trump, investment institutions, the US Treasury Secretary, and the market all express their opinions.

As soon as the news of the party's establishment emerged, Tesla, as the focal point of the storm, quickly became the "market scapegoat."

Tesla (TSLA.O) shares fell over 7% in after-hours trading. As of the time of writing, Tesla's stock price is reported at $315.35, with a market capitalization of $988.14 billion; the stock price has dropped nearly 35% from its previous high of $488.

Trump subsequently made a series of statements: first on social media, he said, "I feel very sad to see Musk completely 'derailed' over the past five weeks, basically turning into a crashed train. He even wants to form a third party, although that has never succeeded in the U.S.—this system doesn’t seem designed for them. The one thing third parties excel at is creating total destruction and chaos." He also stated, "When Musk unequivocally fully supported me, I asked him if he knew I would terminate the electric vehicle authorization, and he said he had no objection to it—I was surprised! Additionally, Musk wants to bring one of his good friends to manage NASA, but I was surprised to find out he is a well-born Democrat who has never donated to Republicans. Musk may be too." Trump added that it is inappropriate to let Musk, who has a vested interest in the space field, choose the NASA leader. Then, before boarding Air Force One in New Jersey, he told reporters: "I think forming a third party is ridiculous. Establishing a third party would only add to the chaos; he can have fun with it, but I think it's absurd."

U.S. Treasury Secretary Bentsen also rarely commented on the matter, stating that the board of Musk's company may be dissatisfied with his political activities; he reminded Musk that he should focus on business rather than politics. The implication is that as a businessman, Musk should not meddle in politics and attempt to influence the political arena. Musk also directly mocked Bentsen's previous criticism of his opinion poll in the DOGE sector, saying: "U.S. Treasury Secretary Bentsen is a puppet of Soros. He is a political science major and can't even do 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 scheduled to launch the ETF "Azoria Tesla Convexity ETF" targeting Tesla last week, announced on Saturday that it would delay the launch of the fund. It is understood that the ETF is 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 that the timing was unstable and decided to postpone the listing plan.

The Aftermath of Musk's Party Formation: A History of Third Party Failures, the Possibility of Embracing BTC, and the Curtain Call for Meme Coins

After Musk officially announced the establishment of a political party, the related topic briefly topped Baidu's hot search rankings. However, analysts believe that even someone as wealthy and influential as Musk, who has undoubtedly demonstrated mobilization ability online and has loyal, high-profile, and influential followers, still faces deep-seated obstacles for a "third party."

Third-party failure records are everywhere.

Public reports indicate that historically, it has been difficult for the "third party" in the United States 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.
Recently, the "Forward Party" founded by Chinese-American entrepreneur and former presidential candidate Andrew Yang has gained attention but struggles to attract appeal.

In addition, according to U.S. law, the qualification of a party eligible to participate in elections requires a complex certification process. First, a party meeting or convention must be held to elect temporary officials, etc. Although Musk posted yesterday asking, "When and where should we hold the first convention of the 'American Party'?" he stated today that the federal election commission (FEC) filing documents for the newly circulated party America Party (AMEP) are false and that he has reported this to the Federal Election Commission. It is evident that the American Party is still at the planning stage on paper.

Does the American party embrace BTC? Yes.

Although the American party has not been officially registered, Musk has already set an example in terms of the party's attitude towards cryptocurrency.

When community users asked if "the American party will embrace BTC," they stated, "There is no hope for fiat currency, so of course (they will embrace BTC)." This once ignited market enthusiasm for buying BTC.

Musk stated: Embrace BTC, yes!

After PVP, the Meme coin is in disarray.

After Musk officially announced the establishment of the party, the Meme coin market reacted the quickest and started a series of PVP battles.

According to information from the GMGN website, a series of meme coins with names like AP (American Party initials), AMEP, America, and america in various cases have already flooded multiple ecosystems such as ETH, SOL, and BSC. However, after yesterday's crazy speculation, most meme coins are now in disarray, with market values being halved or even significantly reduced.

AP Highest Market Capitalization

Conclusion: There are no eternal friends, only eternal interests.

In response to a user's question under Musk's tweet announcing the establishment of the "American Party" about whether his new political party would participate in the 2026 midterm elections or the 2028 presidential election, Musk replied, "Next year" (referring to 2026). Although it remains to be seen whether this news can be verified in the future, the emergence of the American Party is undoubtedly another example of the escalation of the "Te Ma Dou" dispute.

In the unpredictable world of politics and commerce, Musk and Trump have validated a truth through their personal experiences: there are no eternal friends, only eternal interests.