Elon Musk is officially entering politics and Bitcoin is coming with him. On July 5, the Tesla (TSLA) CEO unveiled his long-teased America Party, an independent political group that, according to Musk, will champion Bitcoin, centrism, deregulation, and a rethinking of government spending.
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But as the headlines swirl and Bitcoin sentiment spikes, political analysts are far from convinced. “He has the capacity to be a chaos monkey,” said Francis Wilkinson, a columnist for Bloomberg Opinion. Others are even less generous. And the structure of the U.S. political system isn’t doing Musk any favors.
From Tesla to Third Party, and Now to Bitcoin
The announcement followed Musk’s public opposition to the One Big Beautiful Bill Act, a Trump administration policy that added $5 trillion to the federal debt ceiling, handed out tax breaks for the wealthy, and pulled back on EV incentives, a direct shot at Tesla’s core business.
Musk’s response: launch a new political party. And in typical Musk fashion, the vision came fast and vague. He reposted mock-up platforms from Tesla fan pages, floated cities for the first party congress, and promised support for Bitcoin, but offered few specifics.
Still, the crypto comment stuck. Bitcoin jumped on the association. Musk’s party platform also included deregulation of energy, support for “pro-natalism,” military modernization with AI and robotics, and broad gestures toward centrist reform. But none of it is official. As of now, the America Party doesn’t have a website, legal structure, or funding disclosures.
The System Isn’t Built for a Musk Party
Third parties don’t do well in U.S. politics, and history is not on Musk’s side. From George Wallace’s segregationist 1968 run to Andrew Yang’s Forward Party, every third-party challenger has struggled to scale beyond one-off disruption. That reality is unchanged.
Collin Anderson, political science professor at the University at Buffalo, made it clear: “It would be extremely unlikely for a new major party to form. The structure of the U.S. political system tends toward two major effective parties.”
Anderson noted that only if the Republican Party fractures after Trump leaves the stage could something like Musk’s America Party find an opening. Until then, the effort may amount to little more than noise.
Even Wilkinson, who credited Musk with influence and unlimited airtime, dismissed the odds. “Unless you’re changing the structure of American elections,” he said, “you’re not really going to have an impact.”
Wall Street Isn’t Reacting Well
The market isn’t reacting well. Following the announcement, Tesla shares slipped. Some investors are openly pushing back.
James Fishback, CEO of Azoria, postponed the launch of a Tesla-focused ETF, citing a misalignment with Tesla’s mission. “A political party not only fails to complement Tesla’s mission,” he said, “it actively undermines it.”
The America Party move also adds pressure to Musk’s already scrutinized leadership. Tesla is still reeling from a difficult year, and Musk’s attention appears increasingly split between rocket launches, regulatory fights, and now electoral ambition.
Is Tesla a Buy, Sell, or Hold?
According to TipRanks data, analyst sentiment toward Tesla (TSLA) remains divided. Out of 35 Wall Street analysts who have rated the stock in the last three months, 13 recommend a Buy, 13 say Hold, and 9 suggest Sell.
The average 12-month TSLA price target stands at $294.42, which implies a negligible downside of 0.20% from the current trading level of $295.00.
