Elon Musk is officially back to politics—this time not as a backer, but as a founder. Over the weekend, the Tesla (TSLA) and SpaceX CEO confirmed the formation of his new political movement: the America Party. And yes, it’s pro-Bitcoin.
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When asked whether his new party would embrace Bitcoin, Musk didn’t mince words: “Fiat is hopeless, so yes.”
Musk Picks Bitcoin as the Currency of Change
The move is far from symbolic. Musk’s endorsement of Bitcoin as the financial backbone of his political movement comes after years of on-again, off-again flirtation with the world’s largest cryptocurrency. Tesla made waves back in 2021 when it bought $1.5 billion worth of BTC—catapulting Bitcoin into the corporate treasury spotlight. The company still holds 11,509 BTC, currently worth over $1.2 billion, making it the ninth-largest publicly traded holder of Bitcoin globally.
Now, with Musk directly tying Bitcoin to his vision of political reform, crypto is no longer just an asset class to him—it’s a policy statement.
America Party Rises from Political Disillusionment
The idea of the America Party came to life after Musk conducted a public poll on X (formerly Twitter), where more than 1.24 million users weighed in. Two-thirds voted yes. It was enough for Musk to act. “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” he wrote. The America Party, he suggests, is for those tired of the theatrics, tired of the debt, and tired of being ignored.
The announcement comes amid rising tensions between Musk and Donald Trump over the so-called “One Big Beautiful Bill”—a massive spending initiative that Musk called “insane” and predicted would add $3.3 trillion to the U.S. debt. The two billionaires are no longer just sparring on X; they’re on a collision course with vastly different economic philosophies.
Bitcoin, Not Dogecoin, Becomes the Flagship
While Musk has often been associated with Dogecoin, famously moving markets with his tweets, this marks a decisive shift in allegiance. By aligning his political party with Bitcoin, Musk is signaling a return to hard-money principles. This comes at a time when critics argue the U.S. dollar is losing its luster amid ballooning debt and a weaponized monetary policy.
Some Bitcoin advocates like Jan3 CEO Samson Mow say Musk has an opportunity to dominate the crypto-policy space, especially with his reach. Mow went so far as to suggest SpaceX offer BTC discounts and Tesla resume BTC payments.
Tesla Investors Fear Yet Another Distraction
For Tesla shareholders, Musk’s latest political pivot may feel like déjà vu. With the company grappling with falling EV sales, profit compression, and intensifying competition from both legacy automakers and Chinese upstarts, many expected Musk to double down on steering Tesla through its roughest patch in years.
Instead, he’s launching a political party.
This move raises new concerns about executive focus. Tesla is still valued at nearly $1 trillion—a valuation that banks heavily on Musk’s vision and leadership. But with his attention now split between robotaxis, Optimus robots, and now national politics, some investors are starting to question how many “next big things” Musk can juggle before the core business starts to suffer further.
The numbers aren’t exactly pretty: Tesla’s auto revenue fell in Q1, profits were propped up by regulatory credits, and its long-promised affordable Model 2 is still nowhere in sight. Meanwhile, Musk was campaigning for the “America Party” and publicly feuding with Donald Trump on X.
For a CEO who once said “focus is a superpower,” shareholders are wondering where that superpower has gone—and whether the stock can afford another year of distractions.
Is Tesla a Buy, Sell, or Hold?
According to TipRanks, Tesla currently holds a “Hold” consensus rating from 35 Wall Street analysts. Of those, 14 analysts rate the stock a Buy, 12 recommend Hold, and nine suggest Sell. The average 12-month price target for Tesla is $293.09, representing a 7.06% downside from its last closing price of $315.35.
