Elon Musk announced the formation of a new political party called the “America Party” over the weekend, highlighting support for bitcoin.

The Tesla CEO made the announcement on the social media platform X on July 6, 2025.

In response to a question about bitcoin, Musk said, “Fiat is hopeless, so yes,” indicating the party’s stance on cryptocurrency.

He first introduced the America Party on July 05, 2025, describing it as a challenge to the existing two-party political system in the United States.

Musk criticized the current political landscape, writing on X, “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.”

He added that the America Party aims to restore freedom to citizens.

This announcement follows Musk’s recent disagreement with former US President Donald Trump regarding a US$3.4 trillion spending bill, which Musk criticized for increasing the national deficit.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Third parties historically influence rather than win in American politics

While Trump called Musk’s America Party “ridiculous” and claimed third parties have never succeeded in U.S. history 1, third parties have significantly shaped American politics despite rarely winning the presidency.

Only four third-party candidates have won any electoral votes since 1920, including Strom Thurmond (1948) and George Wallace (1968) 2.

However, third parties have influenced elections and policy: Theodore Roosevelt’s 1912 Progressive Party run captured 27% of the popular vote and split the Republican base, helping Democrat Woodrow Wilson win the presidency 2.

More recently, Ralph Nader’s Green Party campaign in 2000 received 2.9 million votes, potentially affecting Al Gore’s razor-thin loss to George W. Bush by siphoning critical votes in swing states 2.

The U.S. electoral system creates substantial barriers for new parties. The winner-take-all approach and campaign finance laws make it particularly difficult to establish national viability 3.

Musk’s strategy to “laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts” acknowledges these structural challenges, aiming for influence in a closely divided Congress rather than outright dominance.