Tech billionaire Elon Musk has quietly stepped back from his plans to launch the “America Party,” a political initiative he proposed last month following his departure from the White House.
According to The Wall Street Journal, Musk is now prioritizing his business ventures while maintaining a connection with Vice President JD Vance, who could emerge as a leading Republican candidate for president after Donald Trump. Sources familiar with Musk’s thinking say he has expressed concern that continuing with the new party could siphon Republican voters, potentially harming the party’s prospects and straining his relationship with Vance, with whom he has reportedly been in contact recently.
The world’s richest person has also reportedly considered the possibility of financially backing Vance if he decides to run in the 2028 presidential election.
Potential Effects on the 2026 Midterm Elections
Musk’s decision to step back from launching a political party comes as a relief for Republicans, as he had previously hinted at targeting key seats in next year’s midterm elections, potentially challenging some GOP lawmakers.
A Polymarket poll suggests that users anticipate the Republican Party will retain control of the Senate, while Democrats are expected to take the House in the 2026 midterms.
Trump-Musk Feud
Elon Musk’s push to form a new political party in July stemmed from his clash with President Donald Trump over a massive spending bill that Musk opposed.
The legislation, dubbed the One Big Beautiful Bill Act, is projected to raise the U.S. national debt by $3.3 trillion over the next decade. Musk argued that the bill undermined his efforts at the Department of Government Efficiency, where he had sought to curb government spending and reduce the national debt.
Trump criticized Musk’s move to start a new party, accusing him of having “gone off the rails,” sparking a public feud between the two over the bill. Investors were also unsettled by the idea, with Tesla’s stock dropping more than 20% after Musk polled X users in June about forming the party.
On the political front, prediction platform Polymarket currently shows Vice President JD Vance as the favorite for the Republican presidential nomination in 2028, with 53% odds. The same platform places Vance’s chances of winning the presidency at 28%, followed by California Governor Gavin Newsom at 18%.
Despite stepping back for now, sources close to Musk haven’t ruled out the possibility of him revisiting the party as the 2026 midterm elections approach. A report from May also noted that Musk had scaled back his political donations after contributing $250 million to support Trump’s 2024 campaign.
