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America Party Explained: Elon Musk’s Plan for a U.S. Third Party

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Recenlty a member of Trump’s government, Elon Musk has now declared the formation of a new political named the America Party. The idea, Tesla CEO’s said, is positioning it as a centrist alternative to the US’s entrenched two‑party system. He introduced the concept via a poll on X (formerly Twitter), where over 1.2 million users participated and 65% supported the idea. He later confirmed on the platform that the plan is to move forward with the project—but weeks later, already gives signs of having changed his mind.

The America Party aims not just at symbolism, it is designed for targeted political influence. Musk proposed focusing resources on “two or three Senate seats and eight to 10 House districts,” aiming for decisive power in a closely divided legislature.

Public figures like Andrew Yang and Mark Cuban initially offered support or logistical help, such as ballot access. But setting up a completely new and unprecedent third party in the US will not be easy in terms of legal hurdles, complex ballot access rules, and the Duverger’s Law itself, which favors two‑party dominance.

Just weeks after his announcement, Musk appears to have pulled back. After reportedly canceling meetings with third‑party strategists and distancing himself from public planners, Musk has signaled renewed caution. His retreat is linked to concern about harming relationships with powerful Republicans, particularly Vice President JD Vance, whom Musk may support in a potential 2028 presidential bid.

A businessman, before politician

This recalibration reflects strategic political calculation. Speculation suggests Musk is prioritizing his business interests at Tesla, SpaceX, and other ventures, mindful of investor sensitivity to his political adventured. Plus, JD Vance has publicly counseled Musk to abandon third‑party aspirations and instead work within the Republican framework.

For Musk’s companies, this political pivot could ease mounting investor anxiety. Tesla’s stock has been particularly reactive to Musk’s public politics. A strategic withdrawal from creating a new political party may stabilize shareholder confidence and reduce risk exposure tied to partisan backlash. Meanwhile, aligning behind a mainstream Republican figure like Vance preserves potential political influence without radical disruption.

Ultimately, Musk’s America Party initiative underscores his continued blending of business and political ambitions. Whether as a political disruptor or cautious backer, his actions signal a persistent desire to shape policy and public perception in Washington. But for now, political influence may come not from launching an insurgent movement, but by leveraging the existing infrastructure, calibrating power through influence.

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Manuela Tecchio

With over eight years of experience in newsrooms like CNN and Globo, Manuela is a specialized business and finance journalist, trained by FGV and Insper. She has covered the sector across Latin America and Europe, and edits FintechScoop since its founding.