Billionaire Elon Musk last weekend announced plans to create his own new political party, the “America Party.” The announcement came via his social media platform, X, after Musk had a falling out with President Donald Trump over the president’s massive tax and spending legislation.

Musk criticized the Republicans who voted to pass the One Big Beautiful Bill Act, calling the bill an “abomination.” On X, Musk wrote, “Today the America Party is formed to give you back your freedom.”

Trump dismissed the idea, calling the effort “ridiculous.” 

“It’s always been a two-party system, and I think starting a third party just adds to confusion,” the president said. “Third parties have never worked.”

Although no third-party candidate has ever won a U.S. presidential race, Matt Dallek, a political science professor at The George Washington University, said they often influence national politics. 

“Third parties have succeeded, but they've succeeded not by winning but by winning states, winning a large share of the vote and, most importantly, drawing attention to the causes they care about,” Dallek said. 

He pointed to Ross Perot, who ran in 1992, creating a three-way race with incumbent President George H.W. Bush and Bill Clinton. While Perot did not win any states, he won nearly one-fifth of the popular vote, and his effort shaped some of President Bill Clinton’s policies once he took office. 

Dallek said the biggest challenges for third-party candidates are getting on the ballot in each state and funding their campaigns. But ballot access likely would not be an issue for candidates backed by Musk, the world’s richest man. 

“I think it's really important to recognize that Musk, as the richest man in the world, can spend tens of millions, hundreds of millions of dollars of his own money if he wants,” Dallek said. “If he is strategic about it, he could have a real impact.”  

He said Musk could potentially fund primary candidates in a handful of key competitive congressional races, playing the role of a spoiler in the midterms next year. 

Because he was not born in the U.S., Musk cannot run for president himself. However, he can support someone else. But should Trump be worried? 

“If Trump's approval ratings start to sink among Republican voters, they could be looking for somewhere else to go as a protest vote," Dallek said. "Now, some of them maybe would just stay home in a midterm. But others may be attracted to an Elon Musk third-party candidate."

It’s important to note that many third-party efforts fizzle out over time. With Musk also running major companies such as Tesla and SpaceX, it’s unclear how much time he’d be able to devote to a third-party effort in the months ahead.