Elon Musk, the CEO of Tesla Inc. (NASDAQ:TSLA), has reportedly decided to halt his plans to establish a political party, amid hesitation to alienate influential Republicans.
Musk Halts ‘America Party' Idea, Stays Close to GOP
Musk has informed his associates about his intention to shift his focus back to his companies, The Wall Street Journal reported. This change in stance is a departure from his earlier announcement in July about forming the “America Party” for dissatisfied U.S. voters.
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Musk’s decision is partially influenced by his efforts to maintain ties with Vice President JD Vance, a potential successor to the MAGA political movement. Musk has been in regular contact with Vance and has acknowledged that his party formation could strain their relationship.
Even so, Musk has not entirely dismissed the idea of forming a new party and may revisit the possibility as the midterm elections draw closer. Yet, his team has not reached out to influential supporters of the concept, including those who could assist with securing ballot access in key states.
If Musk chooses not to launch a third party, it could give Republicans a major boost in the upcoming midterms, since third parties have traditionally siphoned votes from the two dominant parties.
Trump, Vance Signal Openness To Musk's Political Return
Musk’s potential political party has been a subject of interest, particularly after his public fallout with President Donald Trump over the ‘Big, Beautiful Bill.’
Interestingly, prior to this development, Musk had shown signs of aligning with the Republican Party. He had donated $15 million to Trump and the GOP just three days prior to his third-party bid. Additionally, his political action committee (PAC) had spent millions on a pro-Trump ad campaign.
Despite the backlash over Musk’s political activities, President Trump had defended him, calling him a “good person”. Furthermore, Vice President JD Vance had expressed hope that Musk would rejoin the MAGA contingent by the time of the midterms.
Trump's EV, CAFE Rollbacks Hit Tesla, SpaceX Gains
The development comes as Trump's rollback of the $7,500 federal EV credit and relaxation of CAFE standards threaten to weigh on Musk's businesses, with Tesla's global sales already declining.
Yet in contrast, Trump has signed an executive order loosening space regulations, a move that could benefit Musk's space exploration venture, SpaceX.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
