Once a politician, always a politician. Billionaire Elon Musk has announced plans to return to politics following his public fallout with U.S. President Donald Trump. He says he's forming his own political party. But is there a chance of success?
There are two major political parties in the U.S.: the Democrats and the Republicans. Several minor parties — often called third parties — also exist, but they command just a fraction of the support enjoyed by the two dominant parties and are rarely discussed in mainstream political discourse.
In last year's presidential election, for example, the Democrats and Republicans each secured more than 75 million votes nationwide. Meanwhile, minor parties and independents together drew just 2,878,359 votes.
New political parties are often formed in the U.S., but they typically struggle to gain significant traction. If there's one factor that sets Mr. Musk apart from others who have tried to forge their own political path, it's his wealth.
He is estimated to have contributed at least $250 million to Trump's 2024 election campaign, a sum he has suggested was key to his victory. This makes Musk the largest single contributor to any U.S. political campaign in history.
Analysts estimate it would take Musk about 10 years and perhaps $1 billion to build a viable national party. Creating a new U.S. political force from scratch is a daunting task — even for the world's richest man.
Speaking of Musk’s wealth — or one of its key sources — Tesla stock closed down 6.8% on Monday, erasing nearly $70 billion in market value in a single session, leaving Musk $15 billion poorer.
This drop deepened investor concerns about his growing political entanglements, just as Tesla faces mounting competition, softening demand, and an uncertain future for its self-driving technology.
The decline has dragged Tesla's stock down by about 14% over the past five weeks — a period during which Musk repeatedly clashed with Donald Trump, fueling fears that politics could distract him from Tesla’s core business.
Trump wasted no time attacking his on-and-off ally, writing on Truth Social that Musk had gone “completely off the rails,” describing him as “essentially becoming a TRAIN WRECK over the past five weeks.”
The public spat comes at a sensitive time for Musk, who recently pledged to devote more attention to Tesla and to focus on developing new products like the self-driving taxi, which failed to impress at launch.
The big worry now? That Musk’s “America Party” saga will continue to generate headline risks and distractions, just when Tesla needs unwavering focus to maintain its lead in the EV race.
