President Donald Trump listens as Elon Musk speaks in the Oval Office at the White House, Tuesday, Feb. 11, 2025, in Washington. (AP Photo/Alex Brandon)
Billionaire entrepreneur Elon Musk has decided to halt his plans to establish a new political party, known as the America Party. According to a report from the Wall Street Journal, Musk has communicated to his allies that he prefers to concentrate on his existing business interests rather than pursuing a political agenda. This shift comes after a public disagreement with U.S. President Donald Trump regarding a tax cut and spending bill.
Musk first announced the formation of the America Party in July 2023, but recent developments indicate a change in direction. Sources familiar with the situation say he is now focused on strengthening his relationship with Vice President JD Vance. Musk has reportedly acknowledged to associates that launching a political party could jeopardize his ties with Vance, who has called for unity within the Republican Party following the fallout between Musk and Trump.
In a notable twist, Musk has expressed to those close to Vance that he is contemplating providing financial support for Vance should he decide to run for the presidency in the 2028 election. This marks a significant pivot in Musk’s political ambitions, as he previously dedicated nearly $300 million in 2024 to assist Trump and other Republican candidates, significantly influencing the early stages of Trump’s administration.
Business Focus Amid Political Ambitions
The CEO of Tesla and SpaceX is now concentrating on his core businesses, especially after Tesla reported a concerning 18 percent decline in its stock value this year. The company faced its worst quarterly sales drop in over a decade in July, alongside profits that failed to meet Wall Street expectations, although its profit margins were somewhat better than anticipated.
Despite these challenges, Musk remains a pivotal figure in the business world. He recently cautioned investors about “a few rough quarters” ahead, particularly in light of reduced support for electric vehicles from the Trump administration. His dual focus on political influence and business management has raised concerns about whether he can adequately dedicate time to Tesla while navigating the complexities of his political aspirations.
While Tesla and the White House have not responded to inquiries outside of regular business hours, the implications of Musk’s political maneuvers continue to resonate within the industry. Vance has reiterated his request for Musk to re-align with the Republican Party, emphasizing the need for party cohesion moving forward.
As Musk recalibrates his political ambitions, the impact on his business endeavors and his relationship with key political figures remains to be seen. The evolving landscape will undoubtedly shape his future strategies in both the technological and political arenas.
