Elon Musk is stepping back from his push to form a new political party, according to reporting from the Wall Street Journal. The billionaire entrepreneur has told associates he plans to concentrate on his companies instead, the Journal said, citing people familiar with the matter.
Musk, who unveiled the idea of the “America Party” in July following a public clash with President Donald Trump over tax and spending policies, has not directly confirmed the report. Instead, he dismissed the Journal’s credibility in a post on X, writing: “Nothing @WSJ says should ever be thought of as true.”
The Journal noted that Musk has been working to maintain ties with Vice President JD Vance and acknowledged to confidants that forming a separate political party could strain that relationship. Sources also told the paper that Musk may consider using his wealth to support Vance if he pursues a presidential bid in 2028.
Musk has already been a major political player, spending nearly $300 million in 2024 to support Trump and other Republican candidates, according to Reuters. In May, Musk also vowed to cut back on political spending.
The developments come as Musk faces mounting business challenges. Tesla shares have fallen more than 18% this year after the company reported its steepest quarterly sales decline in over a decade. Though margins came in stronger than anticipated, Musk has warned investors to expect “a few rough quarters” as federal support for electric vehicles winds down under the Trump administration.
The uncertainty has left some shareholders questioning how Musk will balance his political ambitions with the demands of leading Tesla and SpaceX.
