While Musk was able to pour millions of dollars into pro-Trump super PACs last year, he would not legally be able to bankroll a political party. Third parties generally have to spend a great deal of money to secure ballot access before focusing on getting their candidates elected.

Tesla CEO Elon Musk rebuffed analyst Dan Ives' suggestion that Tesla's board establish guardrails for his political activism after he vowed to launch an America Party.

Even before Musk’s threat of a new party, the Republicans faced a tough battle to retain control of the House and possibly the Senate in 2026. If Musk is able to pry away Republican votes in a few hotly contested districts, he could undermine GOP control of Congress and make it harder for President Donald Trump to pull off his agenda.

With his eyes on the midterms, Elon Musk says he's starting a new political party. It's a move that could appeal to a key group Trump made gains with last fall: young voters, particularly young men.