Musk announced formation of the America Party in July 2025 after breaking with Trump over the One Big Beautiful Bill, claiming it would represent the '80% in the middle' of American voters seeking centrist alternatives.

The Wall Street Journal reported in August 2025 that Musk was 'pumping the brakes' on third-party plans, though Musk dismissed the report claiming nothing the Journal says 'should ever be thought of as true.'

Political experts estimate creating a viable third party requires $100+ million just to establish 50 state party organizations and meet ballot access requirements across all jurisdictions.

Musk's break with Trump came after the president signed tax cuts and spending legislation that Musk claimed would add $3.4 trillion to national debt, undermining his Department of Government Efficiency goals.

Historical precedent shows third parties face structural barriers in single-member districts where only one candidate wins, creating strong incentives for voters and politicians to gravitate toward the top two parties.

SpaceX, Starlink, and Tesla hold $15.4 billion in annual government contracts that could face retaliation if Trump weaponizes federal procurement against Musk's political opposition.