Elon Musk Halts Plans for New Political Party

Elon Musk is quietly putting the brakes on plans to launch his own political party, according to a report from the Wall Street Journal. Sources told the paper that Musk, who unveiled the “America Party” in July following a dispute with President Donald Trump over tax and spending policies, has told allies he is now focused on his businesses.

The Tesla founder pushed back on the report, posting on X: “Nothing @WSJ says should ever be thought of as true.”

Focus on JD Vance and Republican Politics

The Journal also reported that Musk is maintaining close ties with Vice President JD Vance, acknowledging privately that launching a separate political party could harm that relationship. Instead, Musk is said to be considering deploying his vast financial resources to back Vance if the vice president chooses to run for president in 2028.

In 2024, Musk reportedly spent nearly $300 million to support Trump and other Republicans during the election cycle, a move that helped solidify his influence in Washington. That spending coincided with Trump’s creation of the so-called Department of Government Efficiency (DOGE), a nod to Musk’s favored cryptocurrency.

Strains With Trump and Shifting Strategy

Musk’s relationship with Trump has been complicated. After a very public feud earlier this year, Vance reportedly called for a truce and encouraged Musk to return to the Republican fold. Musk’s apparent willingness to pause the “America Party” project suggests he may be heeding that advice, aligning his political strategy with Vance while stepping back from directly challenging Trump.

Market Pressures and Business Priorities

Tesla’s stock has struggled in 2025, down more than 18% this year after posting its steepest quarterly sales decline in over a decade. While Tesla’s margins were better than feared, the company missed Wall Street profit targets, and Musk has warned investors to expect “a few rough quarters” amid reduced federal support for electric vehicles under the Trump administration.

These financial headwinds have heightened concerns about whether Musk can dedicate sufficient time to Tesla while managing his political ambitions.

The Bigger Picture

Musk’s flirtation with forming a political party highlights his unique role as both an industrial leader and a political influencer. By stepping back — at least for now — he appears to be recalibrating, prioritizing business stability and preserving political alliances over launching a disruptive third-party challenge.

If he ultimately shifts his financial backing toward JD Vance in a 2028 presidential run, Musk could still shape the future of Republican politics without formally breaking away.

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