U.S. Treasury Secretary Scott Bessent has responded coolly to Elon Musk’s announcement of his new “America Party,” urging the billionaire to prioritize his business responsibilities over political ambitions.
His comments came Sunday during a CNN interview, one day after Musk unveiled plans for a third-party movement to disrupt what he called the U.S.’s “one-party system.”
When asked if the Trump administration was rattled by Musk’s move, Bessent offered a diplomatic but pointed response: “I believe that the boards of directors at his various companies wanted him to come back and run those companies, which he is better at than anyone,” he said.
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“So I imagine that those boards did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities.”
The rebuke underscores growing unease within both the White House and financial markets over Musk’s increasing foray into politics — a move that some investors believe is coming at a steep cost to his companies, particularly Tesla.
The CEO had earlier this year vowed to return to the office – a development that saw Tesla’s share jump.
“Back to spending 24/7 at work and sleeping in factory/server rooms. I must be super focused on X, xAI and Tesla (plus Starship launch next week) as we have critical technologies rolling out,” Musk said
A Bitter Split
Musk and Trump were once politically aligned, with the Tesla and SpaceX chief donating over $280 million to Trump’s 2024 presidential campaign — the most of any individual donor that cycle. He even joined the Trump administration’s budget-cutting drive, heading up the so-called Department of Government Efficiency (DOGE) before stepping down in May.
But relations between the two frayed after Trump passed a sweeping domestic policy bill featuring multitrillion-dollar tax breaks and massive cuts to social services. Musk blasted the bill as fiscally reckless, calling it a “Porky Pig” package that would explode the national debt.
Since then, Musk has publicly vowed to fight against any lawmakers who supported the legislation. His creation of the “America Party” is widely seen as a political counterpunch against both parties — and especially against Trump’s tight grip on the GOP.
Investors Wary of Musk’s Political Drift
While Musk’s political supporters welcomed his move as a bold stand against the establishment, investors in Tesla and his other ventures were far less enthusiastic.
Wedbush Securities analyst Dan Ives, a long-time Tesla bull, said Musk’s political foray is exactly what shareholders didn’t want to see right now.
“Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” Ives said.
“While the core Musk supporters will back Musk at every turn no matter what, there is a broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track.”
Ives said the “initial relief” felt by shareholders after Musk left DOGE has now “taken a turn for the worse,” especially with Musk now shifting attention toward founding a new political force.
In after-hours trading on Sunday, Tesla shares dipped 0.85%, reflecting market jitters about Musk’s dual roles and mounting distractions,” Stock Mom, a Tesla investor, wrote.
Polling Trouble
Bessent acknowledged that some of the principles Musk championed at DOGE — namely efficiency, leaner government, and accountability — were “very popular.” But he didn’t extend the same praise to Musk’s political profile.
“I think, if you looked at the polling, Elon was not,” he said.
That line reflects a broader challenge for Musk: while his tech persona commands admiration, his political brand remains polarizing. A recent Quinnipiac University poll found that while a majority of Americans admire Musk’s entrepreneurial accomplishments, just 29% said they would consider supporting a political party led by him.
What’s Next for Musk and “America Party”?
As of now, Musk has not registered the “America Party” with the Federal Election Commission. He has hinted that the group could focus its resources on a narrow set of Senate and House races to wield influence in a sharply divided Congress.
He said Saturday that targeting “just 2 or 3 Senate seats and 8 to 10 House districts” would be enough to swing key votes on contentious legislation — a clear signal that Musk wants to leverage his money and platform as a power broker rather than a traditional party leader.
Still, political analysts are skeptical that Musk can pull off the kind of electoral insurgency he envisions. Building a viable third party in the U.S. has proven virtually impossible in modern history, especially without grassroots infrastructure or bipartisan support.
A Costly Diversion?
At a time when Tesla is grappling with declining deliveries, heightened competition from Chinese EV makers like BYD, and a sluggish EV market globally, Musk’s growing political involvement is seen by many as an unwanted distraction.
With Tesla’s stock under pressure and AI ventures like xAI still in early stages, even some of Musk’s loyal shareholders are questioning whether his focus on politics risks undermining the very companies that earned him his platform.
Eva McMillan, a Tesla shareholder asked Musk on Sunday: “Elon, what happened to your promises to spend 24/7 at work? How are you going to fit in full time politics?”
While there seems to be a growing support for the America Party, including from billionaire investor Mark Cuban, the market and the administration are sending Musk a message: run your companies, not a party.