Interpretation: Musk founded the "American Party", Trump commented that it was "absurd"

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Original | Odaily Odaily( @OdailyChina )

Author: Wenser ( @wenser 2010 )

No one expected that Musk was serious about building a party!

Just yesterday, Musk cited the results of the previous X platform vote and posted a message saying that he would "establish the American Party", with the main slogan "Return the people's freedom to the people", directly targeting the current ruling party in the United States - the Republican Party; Trump did not show weakness, saying that Musk was "off track" and that "his party-building behavior was absurd". This is also the escalation of the struggle after the situation of the "Trump-Mao fight" eased some time ago.

Odaily Odaily will briefly review Musk’s party building and Trump’s attitude towards the matter in this article, and use this to explore the potential subsequent impact of this matter.

Trump signs new bill in response, Musk fights back by establishing a party

On July 5, Beijing time, US President Trump officially signed the "Big and Beautiful" tax and spending bill into law .

On the afternoon of July 3, the U.S. House of Representatives passed the "Big and Beautiful" bill promoted by President Trump with 218 votes in favor and 214 votes against. The bill has been controversial for cutting federal aid, increasing long-term debt, and cutting taxes for the rich and large companies. Two Republican congressmen voted against the bill that day. The bill was passed by the Senate on July 1. This was the direct trigger for Musk to establish a party.

Focus of the conflict: The "big and beautiful" bill affects Musk's 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, especially spending cuts, which directly affect the "profit cake" of new energy subsidies for Tesla, one of Musk's pillar companies.

On the one hand, the bill signed by Trump focuses on stimulating consumption, that is, permanently extending Trump's 2017 tax cuts and adding new consumer tax benefits; on the other hand, it focuses on reducing spending by cutting new energy subsidies and social welfare spending. Among them, the funding gap of about US$500 billion will be achieved 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 indicates that the economic policy orientation of the US government has shifted from the previous IRA Act's "government guidance + industrial investment" model (such as targeted support for new energy and semiconductors) to the "market-driven + consumption stimulus" model - that is, relying on tax cuts to release the vitality of individuals and businesses, and using consumption rather than government investment as the core growth engine.

You know, Tesla has been able to maintain its position at the forefront of the global automotive industry precisely because of its new energy subsidies and carbon emission business. The "Big and Beautiful" bill is equivalent to directly cutting off this source of income. As Tesla's largest shareholder, Musk certainly cannot ignore it.

Musk's founding of the party: protecting personal interests in the name of the people

On July 4, the day of the Independence Day of the United States, Musk once again launched a vote on the X platform, asking X platform users "Should we create an American party?"

Just like Trump founded Truth Social because he was dissatisfied with the ban and management of his social media account by the platform, Musk naturally reaped the results he wanted on the X platform that he privatized. The final voting results showed that the cumulative number of votes was 1,248,856, of which about 65% of the votes were in favor of establishing a party, and about 35% of the votes were against establishing a party.

A tweet that may go down in history

In the early morning of July 6th, Beijing time, Musk posted on the X platform, citing the previous voting tweet, saying , "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 is established to give you your freedom back." In response to the question of "Why Musk's attitude towards Trump has changed from support to criticism", Musk responded : "The deficit will increase from the already crazy $2 trillion during Biden's administration to $2.5 trillion. This will bankrupt the country." His words fully show his intention to serve the country and the people.

Since then, in the name of the people, Musk has started his own "battle to defend interests."

After the news of Musk's founding of a party spread, reactions from various parties were mixed.

Musk founded a party, Trump, investment institutions, the US Treasury Secretary and the market all expressed their views

As soon as the news of the founding of the party came out, Tesla, as the focus of the storm, became the first "market scapegoat."

Tesla (TSLA.O) US stocks fell more than 7% in the night trading . As of the time of writing, Tesla's stock price was temporarily reported at US$315.35, and its market value was temporarily reported at US$988.14 billion; the stock price has fallen by nearly 35% compared with the previous high price of US$488.

Trump then made a series of statements: First, he said on social media: "I am sad to see Musk completely 'derailed' in the past five weeks and basically turned into a wrecked train. He even wants to form a third party, although this has never worked in the United States-the system does not seem to be designed for them. One thing the third party is best at is creating complete destruction and chaos." He also said, "When Musk fully supported me without a doubt, I asked him if he knew that I would terminate the electric vehicle authorization, and he said he had no opinion on it-I was surprised! In addition, Musk wanted one of his good friends to run NASA, but I was surprised to find that he was a Democrat from a noble family and had never donated to Republicans before. Musk may be the same." Trump added that it was inappropriate for Musk, who has interests in the space field, to choose the leader of NASA. Later, he told reporters before boarding Air Force One in New Jersey : "I think it is ridiculous to form a third party. Forming a third party will only increase chaos. He can have fun, but I think it is ridiculous."

U.S. Treasury Secretary Bessant also made a rare statement on the matter, saying that the board of directors of Musk's company may be dissatisfied with his political activities; and reminded Musk that he should focus on business, not politics. The implication is that as a businessman, Musk should not meddle in politics and try to get involved in politics. Musk also bluntly sarcastically responded to Bessant's previous criticism of his DOGE department's opinion poll: "U.S. Treasury Secretary Bessant is a puppet of Soros. He is a student of political science and can't even learn math. A year ago, my opinion poll results were very positive, which is why Trump attaches so much importance to me."

On the other hand, Azoria, an investment company that was originally scheduled to launch the Tesla-based ETF "Azoria Tesla Convexity ETF" last week, announced on Saturday that it would postpone the launch of the fund. It is understood that the institutional ETF is scheduled to invest in Tesla's stocks and options, providing investors with financial products related to the electric car giant. However, Musk's political actions made Azoria believe that the timing was unstable and decided to postpone the listing plan.

The aftermath of Musk’s party building: the history of the failure of the third party, the possibility of embracing BTC, and the end of the hype of Meme coins

After Musk officially announced the establishment of a party, the related topic once topped Baidu's hot search list, but analysts believe that even for someone like Musk who possesses enormous wealth and influence, and has demonstrated unquestionable mobilization capabilities on the Internet and whose followers are loyal, high-profile and influential, the "third party" obstacle remains deeply rooted.

Third-party failure records abound

Public reports show that historically, it has been difficult for "third parties" in the United States to achieve political success.

American businessman Ross Perot won 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.
Most recently, the Progress Party, founded by Chinese-American entrepreneur and former presidential candidate Andrew Yang, gained attention but struggled to gain traction.

In addition, according to US law, the establishment of a political party eligible to participate in elections requires a complex certification process to confirm its qualifications. First, a caucus or congress must be held, and temporary officials must be elected. Although Musk posted yesterday, "When and where should we hold the first congress of the 'American Party'?", he posted today that the Federal Election Commission (FEC) filing documents of the new political party America Party (AMEP) are false and have been reported to the Federal Election Commission, which shows that the American Party is still in the paper planning stage.

The US party embraces BTC? Yes

Although the U.S. political party has not been officially registered, Musk has already set an example early on in terms of the party's attitude towards cryptocurrencies.

When a community user asked "whether the American party will embrace BTC", it said: "There is no hope for fiat currency, so of course (it will embrace BTC)." This once ignited the market's enthusiasm for buying BTC.

Musk expressed his stance: Embrace BTC, yes!

After PVP, Meme Coins are in a mess

After Musk officially announced the establishment of the party, the Meme coin market, which responded most quickly, also took the lead in starting a series of PVP battles.

According to information from the GMGN website, a series of Meme coins with uppercase and lowercase names such as AP (the first letter of the American Party), AMEP, America, america, etc. have already flooded multiple ecosystems such as ETH, SOL, and BSC. However, after yesterday's crazy speculation, most Meme coins are now in a mess, and their market values have been halved or even shattered.

AP has the highest market value

Conclusion: There are no eternal friends, only eternal interests

When a user asked Musk whether his new party would participate in the 2026 midterm elections or the 2028 presidential election under his tweet announcing the establishment of the "American Party", Musk replied, "next year" (i.e. 2026) . Although we still don't know whether this news can be verified in the future, the emergence of the American Party is undoubtedly another example of the escalation of the "Trump-Mafia" dispute.

In the volatile political and business arena, Musk and Trump have used their own experiences to verify a truth: there are no eternal friends, only eternal interests.