Elon Musk quietly puts brakes on plans for new political party, WSJ says

WASHINGTON – Tesla CEO Elon Musk is quietly pumping the brakes on plans to start a third political party, telling allies that he wants to focus on his companies, The Wall Street Journal reported on Aug 19, citing people with knowledge of the plans.

Mr Musk

unveiled the America Party

in July after a public dispute with President Donald Trump on the tax cut and spending Bill.

He has recently been focused in part on maintaining ties with Vice-President J.D. Vance, the newspaper said, and has acknowledged to associates that forming a political party would damage his relationship with Mr Vance.

Mr Musk, the world’s richest man, and his associates have told people close to Mr Vance that he is considering using some of his financial resources to back Mr Vance if he decides to run for president in 2028, the paper said.

The CEO of Tesla and SpaceX spent nearly US$300 million (S$385.7 million) in 2024 to help Mr Trump and other Republicans get elected, exerting enormous influence in the first few weeks of Mr Trump’s term as head of the newly created efficiency department (Doge).

Reuters could not immediately verify the report. Tesla and the White House did not immediately respond to a Reuters request for comment.

Mr Vance, who had called for a truce following Mr Musk’s all-public feud with Mr Trump, reaffirmed his position in August and said he had asked Mr Musk to return to the Republican fold.

Tesla shares are down more than 18 per cent in 2025 after it posted in July its worst quarterly sales decline in more than a decade and profit that missed Wall Street targets, though its profit margin was better than many had feared.

Mr Musk also warned of “a few rough quarters” after the end of support for electric vehicles by the Trump administration.

Investors worry whether he will be able to devote enough time and attention to Tesla after locking horns with Mr Trump over his ambitions for a new political party. REUTERS