Independent Report – Billionaire entrepreneur Elon Musk appears to be slowing down his political ambitions to establish a new political party, according to a report by the Wall Street Journal. Sources familiar with the matter told the newspaper that Musk has informed his allies he wishes to prioritize his business ventures over political ambitions at this time.
Musk has not publicly confirmed the report. In a post on X, he commented briefly on the story, stating, “Nothing @WSJ says should ever be thought of as true.” Despite this, the Journal’s report sheds light on Musk’s recent political ambitions and his ongoing interactions with key figures in American politics.
Earlier this year, Musk introduced the ‘America Party’ following a public disagreement with former President Donald Trump regarding tax cuts and government spending. The dispute highlighted Musk’s willingness to challenge established political leaders when he disagrees with their policies. However, recent developments suggest that Musk is reevaluating the feasibility of leading a new political movement.
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One factor influencing his decision is Musk’s relationship with Vice President JD Vance. According to the Journal, Musk has acknowledged to associates that forming a political party could harm his ties with Vance. The billionaire has reportedly been in discussions about possibly using his personal wealth to support Vance if he decides to run for president in 2028. This approach would allow Musk to influence political outcomes without the challenges of creating a separate party.
Musk’s involvement in politics is not new. In 2024, his companies, including Tesla and SpaceX, spent close to $300 million supporting Trump and other Republican candidates. This financial contribution played a significant role in shaping early initiatives under Trump’s administration, particularly within newly established efficiency-focused programs. Musk’s political influence has therefore been considerable, even without holding a formal party position.
The Journal report also indicates that Musk’s decision to pause his political plans may reflect concerns about balancing his business responsibilities. Tesla, the electric vehicle manufacturer he leads, has experienced significant challenges this year. The company reported its largest quarterly sales decline in more than ten years in July. Profits also fell short of Wall Street expectations, although margins were slightly better than initially feared.
Investors have expressed concern over Musk’s ability to maintain focus on Tesla, especially after his public clashes with Trump and the potential distractions of launching a political party. The CEO has cautioned that Tesla may face “a few rough quarters” ahead, particularly following the conclusion of federal support for electric vehicles under the previous administration.
Vice President Vance, who had previously called for a reconciliation following Musk’s public feud with Trump, has reiterated his stance this month. Vance reportedly encouraged Musk to return his focus to the Republican Party, reinforcing the idea that a separate political venture could complicate existing alliances.
At the same time, Musk’s financial support for potential candidates like Vance demonstrates that he may continue to exert political influence indirectly. By backing individuals aligned with his interests, Musk can maintain a role in shaping political outcomes without the logistical and reputational challenges of leading a new party himself.
Tesla’s stock performance this year has mirrored the uncertainty surrounding Musk’s political and business priorities. Shares have fallen by more than 18% amid concerns over declining sales and missed profit targets. Market observers remain cautious about how much time Musk can devote to Tesla while also pursuing political ambitions.
Despite the challenges, Musk’s entrepreneurial and political activities continue to draw significant public attention. His decisions will likely influence not only his companies but also broader political dynamics in the United States. While the future of the America Party remains uncertain, Musk’s ongoing engagement with influential figures like Vance suggests he will remain a notable player in both business and politics.
As Musk navigates these complex responsibilities, the balance between business priorities and political influence will be critical. Investors, political allies, and the public will continue to watch closely how he manages these competing demands in the months ahead.
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