Musk has told associates he wants to avoid alienating Republicans while concentrating on Tesla and SpaceX, even as he weighs future political bets such as backing JD Vance’s potential 2028 run.
Elon Musk is quietly backing away from launching a new political party after concluding it could damage his ties with Republicans and Vice President JD Vance.
The Tesla and SpaceX chief, who last month floated the idea of an “America Party” to challenge Democrats and Republicans alike, has reportedly told allies he now wants to focus on his companies and avoid alienating GOP leaders, The Wall Street Journal noted.
The shift marks a reversal from July, when Musk vowed to contest House and Senate races under the new banner.
While he hasn’t formally ruled out the idea, his team reportedly recently canceled talks with outside organizers who specialize in third-party campaigns, citing his need to prioritize business operations.
As Musk announced his intention to start a party, one-time presidential candidate Andrew Yang said he had been in touch with Musk and his team about the effort, though he did not share details of their discussions.
Mark Cuban, who endorsed the idea after Musk’s July announcement, said in an email that he has not spoken with Musk or his team about the new party.
The billionaire has acknowledged to associates that launching a third party would strain his relationship with Vance, a key figure in the MAGA movement. Musk has even signaled willingness to financially back Vance if he runs for president in 2028, after spending nearly $300 million on Trump and Republicans in 2024.
For Republicans, his decision to hold off on a new party is seen as a win ahead of the 2026 midterms, since third parties often siphon away votes.
Musk and Trump, who had a public falling-out earlier this year, have also reached a temporary truce. Trump recently praised Musk’s businesses on social media, easing prior threats to cut federal contracts, while Musk has refrained from criticizing Trump online. Meanwhile, SpaceX could benefit from a new executive order easing rocket permitting rules.
Despite Musk’s July pledge to create a party he said would restore “freedom” to voters, GOP veterans warn he would struggle to hire advisers without alienating Trump’s camp.
The Libertarian Party has tried to persuade Musk to join forces instead of building from scratch, but its chair, Steven Nekhaila, said there has been “an eerie silence” from Musk’s side.
On Stocktwits, retail sentiment for Elon Musk–led Tesla was ‘bearish’ amid ‘low’ message volume, while sentiment for his other company SpaceX was ‘bullish’ with ‘high’ activity.
Tesla’s stock has declined 18.5% so far in 2025.
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