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Elon Musk is pausing plans to launch his new political party as he shifts attention back to his businesses, The Wall Street Journal reported Tuesday.
Musk announced the “America Party” in July after clashing publicly with President Donald Trump over a tax and spending package. But people familiar with the matter told the Journal that Musk now believes pushing ahead would strain ties with Vice President JD Vance, with whom he has worked to maintain a relationship.
The billionaire has reportedly told associates he may consider directing resources to support Vance if the vice president runs for president in 2028, according to the report.
Musk, the world’s richest person and CEO of Tesla and SpaceX, poured nearly $300 million into helping Trump and Republicans in 2024, including backing the launch of the Department of Government Efficiency, or DOGE.
Vance, who earlier urged a truce after Musk feuded with Trump, said this month he had encouraged Musk to remain within the Republican Party.
Musk’s companies are also under pressure. Tesla shares have fallen this year after reporting its steepest quarterly sales drop in more than a decade, though profit margins came in stronger than expected. Musk warned investors to expect “a few rough quarters” following the Trump administration’s decision to end federal support for electric vehicles.
President Trump criticized Musk’s newly announced political party last month, calling it “ridiculous” and saying third parties only create confusion.
“He can have fun with it but I think it’s ridiculous,” Trump told reporters after stepping off Air Force One, dismissing the idea.
The president said third-party efforts have historically failed to gain traction in American politics and argued that Musk’s initiative would only divide voters.
“Third parties have never worked,” Trump said. “It would just add to confusion.”
Trump also sounded off over Musk’s proposal in a lengthy post to Truth Social in July.
“I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks. He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States – The System seems not designed for them. The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds!” Trump wrote.