How Elon Musk Could Upend US Politics—And Why India Should Pay Attention
Elon Musk's new American Party could have ripple effects for India, given his deep business ties and disruptive influence. Find out how
Billionaire Elon Musk has made his starkest threat to President Donald Trump after he stepped away from politics by launching his 'American Party'.
The development comes after Musk condemned Trump's 'Big, Beautiful Bill" (new tax bill) on social media platform X a few days ago. 'Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth," he wrote.
The President on Sunday assailed Musk, describing him as 'off the rails", over his new party announcement. 'I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a TRAIN WRECK over the past five weeks," Trump wrote on Truth Social on Sunday evening. 'He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States."
The American Party confirms the rupture in Trump's relationship with Musk, who spent millions of dollars to support the Republican leaders in his campaign. Trump, in return, rewarded the businessman with a new position in the Department Of Government Efficiency, which oversaw drastic cuts to government staffing.
Let us understand how Musk's new party threatens Trump's political capital and how the President could hurt the businessman.
How Musk Could Threaten Trump Politically?
With a net worth of $405 billion, Musk could single-handedly reshape US politics. In 2024, he poured $295 million into Republican campaigns—mostly backing Trump. While that's a record-breaking sum in politics, it's pocket change for Musk.
For context, in 2023 and 2024, the total amount of money raised by all presidential candidates was only $2 billion, according to the Federal Election Commission. Congressional candidates raised $3.8 billion, while PACs raised a more respectable $15.7 billion.
It won't be difficult for Musk to match those amounts because his wealth is tied up in stocks that can't easily be unloaded all at once. Based on last week's share prices, he could pay for the entire 2024 election cycle by liquidating just one fifth of his reported $130 billion stake in Tesla.
He has also suggested donating the amount to Republican representative Thomas Massie, a persistent critic of Trump's. There's still another $100 million Musk previously promised Trump that he could decide to withhold, as per The Independent.
He could even bankroll Democrats, who will likely take it (although Trump has threatened 'serious consequences" in that scenario). They are politicians, after all.
While third parties rarely challenge America's two-party system, Musk's billions could disrupt the 2026 congressional elections — if he chooses to spend big, reports NPR.
Interestingly, Musk believes that 80% of Americans share his views—a claim that seems far from reality. According to polling expert Nate Silver, Musk's net favourability stands at a weighted average of -18%, significantly lower than even Trump's, The Independent reported.
Clash Of Personalities
Musk has cultivated a loyal following that mirrors—and in some ways surpasses—the fervent base of Trump. Both men command near-religious devotion from supporters, blending celebrity, controversy, and populist rhetoric to dominate public discourse. But while Trump's appeal stems from his 'America First" nationalism and brash persona, Musk's influence is built on his image as a visionary technocrat, the real-life Tony Stark bending the future to his will.
His tweets move markets, his memes go viral, and his every pronouncement sparks global debate. Where Trump mastered TV and rallies, Musk dominates X (formerly Twitter), using the platform to amplify conspiracy theories, troll critics, and position himself as a free-speech crusader.
The parallels run deep. Both men thrive on polarisation, calling themselves as anti-establishment outsiders despite their immense wealth and power. Trump had his 'fake news" mantra; Musk decries 'woke mind viruses." Both attract fans who see them as truth-tellers fighting corrupt elites—even as Musk's companies benefit from government subsidies and Trump's presidency was defined by corporate favouritism. Their supporters dismiss scandals (Trump's indictments, Musk's erratic behaviour) as evidence of a rigged system targeting their hero.
But Musk's cult may be more dangerous because it's apolitical at its core. Trump's base is ideological; Musk's is transactional, united by tech utopianism rather than policy.
As the 2024 election showed, his endorsements—or withheld donations—can sway races. With his wealth, platform, and fanbase, Musk doesn't just rival Trump's influence—he's rewriting the rules of political power itself. The question isn't whether he'll reshape elections, but how far he's willing to go.
How Musk Has Global Influence
Musk's power extends far beyond any single nation or sector, giving him leverage few can match. For example, NASA depends entirely on SpaceX—currently the only reliable transporter of astronauts to the International Space Station. His satellite venture, Starlink, has become indispensable to militaries and governments worldwide, including US agencies.
But his influence is far beyond. Thanks to Tesla's role in jumpstarting China's electric vehicle dominance, Musk enjoys both a massive fanbase in China and good relations with the Chinese Communist Party. Reports show Chinese supporters rally behind him—one Weibo user recently declared, 'Brother Musk, you've got over a billion people on our side backing you."
Perhaps most intriguing, however, is the political ammunition Musk may possess. After spending months deeply embedded in Trump's White House, he likely holds insider knowledge that could damage Trump if revealed.
Musk recently hinted at Trump's inclusion in the Epstein files, reviving long-standing (though unproven) associations between Trump and the disgraced financier. While nothing new, the remark demonstrates Musk's willingness to weaponise controversy.
What Musk's Party Means For India?
Musk's new American Party could have ripple effects for India, given his deep business ties and disruptive influence. As the CEO of Tesla, SpaceX, and owner of X, Musk wields significant economic and technological leverage—factors that directly impact India's tech and space ambitions. If his party gains traction, it could reshape US-India relations, particularly in areas like trade, climate policy, and defence.
India has actively courted Musk, with Prime Minister Narendra Modi asking Tesla to invest in local manufacturing and SpaceX exploring partnerships with ISRO for satellite broadband via Starlink. A Musk-aligned US political movement prioritising deregulation and private-sector innovation could accelerate these collaborations, benefiting India's renewable energy and space sectors.
However, his unpredictable stance on issues like free speech and trade protectionism might introduce volatility. For instance, if Musk pushes for US tech dominance at the expense of global partnerships, Indian start-ups relying on American markets or investments could face hurdles.
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Politically, Musk's anti-establishment rhetoric could resonate with India's youth and tech elites, but his libertarian leanings could be an issue with India's regulatory frameworks. His influence could also complicate India's balancing act between the US and China—especially if his party takes a hardline stance on Beijing, given Tesla's reliance on Chinese supply chains.
While Musk's political venture might open doors for tech-driven cooperation, India must navigate his policies and prepare for both opportunities and disruptions in trade, diplomacy, and innovation.
About the Author
Shilpy Bisht
Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her prev...Read More
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July 07, 2025, 14:35 IST
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