Tesla CEO Elon Musk is stepping back from plans to form a new political party, sources say, as he shifts focus to his business empire and seeks to avoid damaging relationships with influential Republicans.
The Tesla and SpaceX CEO announced the “America Party” in July following a public dispute with President Donald Trump over Trump’s “Big Beautiful Bill.” But Musk has since reconsidered the effort, multiple sources told the Wall Street Journal.
According to the report, Musk’s reversal comes as he seeks to maintain ties with Vice President JD Vance, who is considered a leading contender for the 2028 Republican presidential nomination. The sources say Musk is considering providing financial backing for Vance if he runs.
Musk spent approximately $300 million backing Trump’s 2024 campaign and supporting GOP candidates before their very public breakup.
Related: Tesla Slides After Trump Says He’ll ‘Look At’ Deporting Musk
Tesla shares have declined more than 18% this year following the company’s steepest quarterly sales drop in over 10 years. Musk warned investors of “a few rough quarters” following the Trump administration’s elimination of electric vehicle subsidies.
When asked about the Journal’s reporting, Musk wrote on his X social media platform that “Nothing @WSJ says should ever be thought of as true.”
Polling showed limited public support for a Musk-led party, with CNN finding only 25% of adults favoring such an effort. Political scientists noted the structural challenges facing third parties in the US winner-take-all electoral system.
Musk’s allies say he hasn’t formally ruled out creating a new party and could reconsider as the 2026 midterm elections approach. For now, the America Party appears indefinitely shelved.
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