Money Can’t Buy Votes? Elon Musk’s “American Party” and His High-Stakes Political Gamble

Recently, Elon Musk made headlines by announcing the formation of the “American Party,” boldly claiming it will embrace Bitcoin and challenge the United States’ entrenched two-party system.
In Musk’s eyes, fiat currency is “hopeless,” and technology plus crypto assets might become a new lever to shake up politics. However, looking back at the history of third parties in the U.S. and the reality of its electoral system, this seemingly well-funded and high-profile experiment may be destined to be a high-risk political bet.

1. Why Musk Founded the “American Party”: The Clash of Interests Behind the “Big and Beautiful” Bill

Musk’s sudden declaration of a new political party may look impulsive, but it is deeply rooted in very practical business interests: his relationship with Trump has fractured.

Earlier this year, the Trump administration’s “Big and Beautiful” bill eliminated tax credits that had encouraged electric vehicle purchases—a policy change that costs Tesla about $1.2 billion in annual losses. In addition, Trump plans to cut NASA’s science budget from $7.3 billion to $3.9 billion, which directly impacts SpaceX’s core operations.

More intriguingly, The New York Times revealed that Musk had once promised to support Trump’s campaign with hundreds of millions in funding—support that has yet to fully materialize, eroding the trust between them.

On the surface, Musk is striking back with claims that “America is going bankrupt due to corruption and waste.” In reality, founding a new party is more a direct counterattack and a decision driven by real business interests than a purely ideological mission.

2. Why Are Third Parties in the U.S. Doomed to Be Marginal?

History repeatedly shows that third parties have never truly succeeded in the U.S.

In 1912, former President Roosevelt founded the Progressive Party and won 27% of the popular vote—but still lost to Democrat Woodrow Wilson. In 1992, Ross Perot captured 19% of the vote but failed to secure a single electoral vote. Similar examples are scattered throughout American history.

Why is it so difficult? The core reason lies in America’s winner-takes-all electoral system. Unless a party wins the most votes in a single district, it gets nothing—making it nearly impossible for smaller parties to build momentum over time.

Additionally, ballot access requirements in many states are daunting. For example, California requires a new party to recruit around 75,000 registered voters or collect at least 1.1 million valid signatures. Veteran election lawyer Richard Winger notes, “Even with unlimited money, building a nationwide party takes years and possibly billions of dollars.”

This is the hard truth Musk faces: no matter how deep his pockets are, systemic barriers are not easily overcome.

3. The Party’s Platform: Pro-Crypto Rhetoric Meets Tough Reality

Musk has yet to release a detailed party platform, but he confirmed key policy goals while responding to online questions. Asked whether the American Party would push for debt reduction, responsible spending only, modernizing the military with AI and robotics, accelerating AI development to maintain U.S. dominance, cutting regulation (especially in energy), protecting free speech, incentivizing births, and taking centrist stances on other issues, Musk simply answered: “Yes.”

On crypto assets, Musk made it clear that the American Party will strongly embrace Bitcoin, even saying that fiat money is “hopeless.” While novel, this stance faces substantial real-world hurdles.

Bitcoin has indeed attracted major institutional capital in recent years. For instance, BlackRock’s spot Bitcoin ETF has grown to $75 billion in assets under management, generating annual revenue exceeding $187 million—surpassing even its S&P 500 ETF.

However, for ordinary American voters, the awareness gap is huge. Most still see Bitcoin as a highly speculative asset rather than a political cause.

Even if Musk can attract the attention of young voters and the tech elite for a while, pushing concrete crypto policies in the face of traditional financial institutions and strict regulation will be extremely challenging. Bitcoin may win headlines, but turning that buzz into real political clout is another story.

4. How Far Can the “American Party” Go? It All Hinges on Musk’s Personal Appeal

Historically, third-party survival often depends on the leader’s personal charisma. In 1968, the American Independent Party under George Wallace won electoral votes in five southern states, but the party faded as Wallace’s influence waned.

Musk currently enjoys a powerful personal brand, but that brand is deeply intertwined with Tesla and SpaceX. Should his companies face an operational crisis or reputational hit, the party could collapse just as quickly.

In April, Musk invested $20 million in a Wisconsin Supreme Court election to sway the result—but ultimately failed, proving that money and star power alone don’t guarantee political victories.

Georgetown political science professor Hans Noel noted, “A new party needs extremely loyal, active supporters. Money alone is not enough.” While Musk’s tech-savvy, younger audience may be enthusiastic, whether they become consistent political backers is highly uncertain.

5. A Political Experiment Trapped by Institutional Barriers

Overall, Musk’s new party faces far more obstacles than most imagine.

On one hand, the electoral system is inherently hostile to third parties—winner-takes-all rules severely limit their survival space. On the other hand, state-level ballot requirements demand enormous resources and time.

Moreover, mainstream media and the presidential debate commission are tightly controlled by the two major parties, making it nearly impossible for smaller parties to gain sufficient exposure. Historically, successful third parties have usually just disrupted the system temporarily, with their ideas eventually absorbed by the two dominant parties.

Despite its fresh message, Musk’s American Party is unlikely to escape this familiar fate.

Conclusion: An Expensive Political Experiment at Best

Looking back, Musk’s launch of the American Party may seem radical but is likely just an expensive political experiment.

His conflict with Trump drove its creation, while the Bitcoin-friendly policy provides an eye-catching hook. Yet institutional barriers, voter reality, and personal brand risk all mean this new party is unlikely to achieve lasting success.

In a political landscape dominated by the two-party system, Musk’s American Party will likely remain a sideshow.

This pro-Bitcoin third-party experiment may ultimately prove just one thing: in America, money isn’t everything—tradition and institutions are far harder to beat. Whether Musk’s ambition endures may be more worth watching than the party’s actual future.

Risk Disclaimer: This article is for information only and does not constitute any investment advice. Markets carry risks. Please manage your positions carefully.