Elon Musk, the billionaire entrepreneur behind Tesla and SpaceX, has quietly shelved his much-publicized plans to launch a new political party, the "America Party," according to recent reports from The Wall Street Journal and Australian Associated Press. The move comes just weeks after Musk's highly visible feud with former President Donald Trump and amid growing concerns from investors about his divided attention between business and politics.
The idea of the America Party first surfaced in July 2025, following a public spat between Musk and Trump over tax and spending bills. The rift was widely covered, with Musk's subsequent announcements fueling speculation that he might seek to disrupt the traditional two-party system in the United States. Yet, as August drew to a close, multiple sources indicated that Musk was pulling back from these ambitions, at least for now.
According to Latin Times, Musk's decision to pause his political project was motivated by a desire to maintain good relations with prominent Republicans, notably Vice President JD Vance. Vance, often described as the heir apparent to the Make America Great Again (MAGA) movement, has been seen as a key figure in the GOP's future, and Musk has reportedly told associates that supporting Vance is a higher priority than launching a third party that could siphon off conservative votes. "Forming the 'America Party' would harm his relationship with the heir apparent of the MAGA movement," the report noted.
People close to Musk have said that he would rather focus on his companies than risk alienating the GOP base. However, the door isn't closed entirely. As The Wall Street Journal reported, Musk has not completely abandoned the America Party concept and will make a final decision based on the outcome of the 2026 midterm elections. "He has not completely ended the project and will make a decision based on how the 2026 midterms go," sources told the publication.
The billionaire himself responded to the coverage with characteristic bluntness. Taking to his social media platform X, Musk wrote, "Nothing The Wall Street Journal says should ever be thought of as true." The comment, while dismissive, did little to quell speculation about his political intentions, especially given the high stakes and personalities involved.
Earlier reports from Axios in late July suggested that Musk had already "read the room" and was not taking visible steps to create a new party. The outlet also noted that tensions between Musk and Trump had eased, with Trump posting in July, "I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!" This surprising olive branch, after their earlier fallout, seemed to signal a thaw in their relationship—at least publicly.
Yet, the saga has not been without its critics. In early August, some conservatives voiced disapproval over rumors that Musk might choose former Vice President Mike Pence to lead the America Party. The backlash underscored the delicate balancing act Musk faces as he navigates the fractious world of Republican politics, where allegiances can shift quickly and old wounds are slow to heal.
Behind the scenes, Musk and his confidants have been focused on preserving ties with JD Vance. According to Australian Associated Press, Musk has acknowledged to associates that forming a political party would damage his relationship with Vance—a relationship that could prove pivotal if Vance decides to run for president in 2028. Notably, Musk is considering using some of his vast financial resources to back Vance should he make a bid for the White House. "Musk and his associates have told people close to Vance that the billionaire is considering using some of his financial resources to back Vance if he decides to run for president in 2028," the report stated.
Musk’s political involvement is far from hypothetical. In 2024, he spent nearly $300 million to help Trump and other Republicans get elected, a figure that underscores his willingness to spend big in pursuit of his political and business interests. Tesla analyst Dan Ives, speaking to Latin Times, commented that Musk has "read the room" and that shareholders "don't want him in politics." Ives went on to say, "The Trump experiment gone bad with Musk was a significant dark time for Tesla shareholders." He believes Musk will still support candidates financially but is unlikely to launch a third party effort.
Investor anxiety has been palpable. Tesla shares have dropped more than 18% in 2025, following the company's worst quarterly sales decline in over a decade and profits that missed Wall Street expectations. Musk himself warned of "a few rough quarters" ahead, particularly after the Trump administration ended support for electric vehicles—a policy change that hit Tesla hard. These business headwinds have only heightened concerns about Musk’s ability to juggle his corporate responsibilities with his political ambitions.
JD Vance, for his part, has played a mediating role in the ongoing drama. After the Musk-Trump feud, Vance called for a truce and, in August 2025, reaffirmed his call for Musk to return to the Republican fold. According to Australian Associated Press, "Vance, who had called for a truce following Musk's all-public feud with Trump, reaffirmed his position this month and said he had asked Musk to return to the Republican fold." This outreach appears to have resonated with Musk, at least for the time being.
Despite the current pause, the story is far from over. Musk has left open the possibility of revisiting the America Party project after the 2026 midterms. For now, though, it appears he is content to wield his influence from behind the scenes, supporting candidates like Vance and focusing on his sprawling business empire.
As the dust settles, one thing is clear: Elon Musk remains a force to be reckoned with, both in the boardroom and on the political stage. Whether he chooses to re-enter the political fray with a new party or continues to exert his influence through more traditional channels, his decisions will be closely watched by allies, rivals, and investors alike.
For now, the billionaire’s political ambitions are on hold, but the intrigue and speculation surrounding his next move show no signs of fading.
