Elon Musk Halts Project Under Political Pressure

Elon Musk, a leading figure in tech and accustomed to strategic breakups, shook the American political scene by suggesting the creation of his own movement, the “America Party.” The announcement, spectacular, promised a redefinition of the electoral game. But to everyone’s surprise, the project is now suspended.

Musk suspends his political party project

Announced in July, Elon Musk’s project to create a political party called “America Party” has finally been put on hold, according to a Wall Street Journal report.

The initiative followed a fundamental disagreement with Donald Trump, notably around a public spending bill called “One Big Beautiful Bill Act”, which plans to increase the US public debt by 3.3 trillion dollars over a decade.

Musk believed this bill nullified efforts he had made within the Department of Government Efficiency, a government agency created to reduce state spending.

However, Musk ultimately decided to freeze the launch of his movement for precise strategic and political reasons :

• “If I continue to create a new party, it could weaken the Republicans and cut me off from JD Vance”, he reportedly told his allies, according to the Wall Street Journal ;

• He wants to preserve his relationship with Vice President JD Vance, potentially to support him in the 2028 presidential election ;

• Musk has reportedly already started recent discussions with Vance and even considers supporting him financially if he runs ;

• The project withdrawal is seen as a relief for the Republican Party, which feared Musk might disrupt the 2026 midterm elections by targeting some of its elected officials ;

• Musk does not rule out a later restart, depending on changes in the political landscape.

Indeed, this suspension is not an ideological renunciation but a tactical repositioning. Musk seems to have measured the risks of such a movement in a context of realignment of right-wing alliances ahead of major electoral deadlines.

Between financial markets and influence strategy: Musk facing the limits of his power

Beyond political considerations, the reaction of financial markets also weighed on the balance. When Musk began polling his followers on the social network X (formerly Twitter) about the creation of “the America Party”, Tesla’s stock fell by more than 20 %, a clear signal of investor nervousness over this political drift seen as risky.

https://twitter.com/elonmusk/status/1930685402631053403

This reaction likely helped temper his ambitions, especially since shareholders had already shown criticism towards his previous political positions.

Though his party project is temporarily frozen, nothing excludes it from resurfacing ahead of the 2026 midterm elections, particularly if the political context evolves or if his relationship with JD Vance deteriorates.

At this stage, several unknowns remain. Musk’s attitude reflects a wait-and-see strategy rather than a definitive renunciation. As a transversal actor, both industrial, media, and political, he retains the capacity to influence the electoral and media agenda. The suspension of his “America Party” is therefore just one episode in a trajectory where each position taken can have deep repercussions, including for the crypto sector, which Musk has repeatedly impacted through his warnings.