Billionaire entrepreneur Elon Musk is reportedly halting plans to establish a new political party, known as the America Party, as he prioritizes his business ventures. According to a report from the Wall Street Journal, Musk has communicated to his allies that he wishes to concentrate on his companies, including Tesla and SpaceX.
The announcement follows a public fallout between Musk and former US President Donald Trump over issues related to the tax cut and spending bill. After unveiling the America Party in July, Musk has increasingly focused on maintaining a relationship with Vice President JD Vance. Sources familiar with the matter indicated that Musk acknowledged that forming a political party could jeopardize his ties with Vance.
Musk, listed as the world’s richest person, has expressed to associates the possibility of supporting Vance financially should he decide to run for the presidency in 2028. This would mark a significant shift in Musk’s political strategy, as he previously invested nearly $300 million in 2024 to assist Trump and other Republican candidates in their electoral campaigns.
Concerns Over Business Focus
The CEO of Tesla and SpaceX has faced scrutiny regarding his ability to manage his companies while engaging in political ventures. Tesla’s stock has declined over 18 percent this year, following a disappointing quarterly sales report in July—the worst drop in over a decade. Although the company’s profit margin exceeded expectations, the overall performance did not meet Wall Street’s targets.
Musk has also cautioned investors about the potential for “a few rough quarters” following the end of the Trump administration’s support for electric vehicles. His political ambitions have raised questions about his commitment to Tesla and whether he can effectively lead the company through challenging times.
In a recent statement, Vance reaffirmed his call for a truce after Musk’s very public dispute with Trump and urged the billionaire to return to the Republican Party. The dynamic between these influential figures remains crucial as they navigate the complex intersection of politics and business.
Neither Tesla nor the White House responded immediately to requests for comment outside of regular business hours, and Reuters could not independently verify the details reported by the Wall Street Journal.
As Musk re-evaluates his political aspirations, the implications for both his business empire and his relationships within the Republican Party will be closely monitored by investors and political analysts alike.
