Elon Musk dials down plans for new political party- WSJ

Published 20/08/2025, 02:32
© Reuters

Investing.com-- Elon Musk is quietly dialing down his plans to start a political party, the Wall Street Journal reported on Tuesday, as the Tesla (NASDAQ:TSLA) CEO seeks to maintain alliances with top Republicans.

Musk told allies that he wants to focus his attention more on his companies, and is reluctant to alienate powerful Republicans by starting a party that could siphon away their voters, the WSJ report said, citing people with knowledge of Musk’s plans. 

The Tesla CEO had in July said he would start a new party, called the America Party, to represent voters unhappy with both the Republicans and the Democrats.

But since then, Musk has made few actual moves towards establishing the third party. He was also seen maintaining ties with Vice President JD Vance, who is widely seen as a presidential candidate in 2028. 

Musk also acknowledged that he could damage his ties with Vance if he proceeded with forming his political party. 

Vance had recently expressed hopes that Musk would return to the Republicans. The world’s richest man was seen spending some $300 million to back Trump and other Republicans in the 2024 elections.

But Musk and Trump were seen having a major falling out earlier this year, with both engaging in personal insults and criticism over social media. A bulk of this falling out stemmed from Musk’s criticism of Trump’s “big beautiful bill,” which he claimed would undermine his efforts to cut government spending as part of the Department of Government Efficiency. 

The big beautiful bill, which was passed in July, will end a government scheme of environmental credits for electric vehicle makers, cutting off a major revenue stream for Tesla.

Trump had threatened to nix Musk’s federal contracts, especially for SpaceX. But a review found that most of the contracts were tied to key functions in the Defense Department and the National Aeronautics and Space Administration. 

 

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