On July 6, 2023, Elon Musk intensified his ongoing feud with Donald Trump by announcing the creation of a new political party called the America Party. This announcement came shortly after Trump’s administration pushed through a controversial tax-cut and spending bill, which Musk claims could lead to the financial ruin of the United States. In response to Musk's political pivot, Treasury Secretary Scott Bessent advised him to remain focused on his business ventures, particularly his leadership roles at Tesla and SpaceX.
Musk's declaration of the America Party aims to challenge Republican lawmakers who supported what he labeled the big, beautiful bill during the upcoming midterm elections. The bill, which passed along party lines, has drawn significant criticism for its potential to increase the federal budget deficit. Musk, who previously served as a key advisor to Trump during the early days of his presidency, is now positioning his new party as a means to push back against policies he believes are harmful to the country.
In an appearance on CNN's State of the Union, Treasury Secretary Bessent expressed skepticism regarding Musk's new political venture, suggesting that the boards of directors at Tesla and SpaceX would likely prefer him to prioritize his corporate responsibilities over political pursuits. Bessent remarked, "I imagine that those boards of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities."
The White House chose not to directly engage with Musk's political maneuvers but asserted that the passage of the tax-cut bill indicated a robust state for the Republican Party. White House spokesperson Harrison Fields stated, "As the leader of the Republican Party, President Trump has unified and grown the party in a way we've never seen."
In light of Musk's announcement, Azoria Partners swiftly criticized the decision, delaying the launch of its Azoria Tesla Convexity exchange-traded fund. The CEO of Azoria, James Fishback, publicly urged Musk to clarify his political intentions, emphasizing the importance of his responsibilities as Tesla's CEO. He tweeted, "I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO."
Critics of the tax-cut and spending bill argue that it poses a threat to the U.S. economy by significantly increasing the federal budget deficit. Musk's criticism is compounded by Trump's assertion that the new measure removes green-energy credits that benefit Tesla’s electric vehicles. The former president has also indicated that Musk's dissent may jeopardize the substantial government contracts and subsidies awarded to Tesla and SpaceX.
Bessent further noted that public sentiment may not be in Musk's favor, suggesting that voters appreciated the Department of Government Efficiency (DOGE) initiative that Musk previously led more than they value Musk himself. He stated, "The principles of DOGE were very popular; I think if you looked at the polling, Elon was not."
As the political landscape shifts with Musk's new party, the implications for both his businesses and his relationship with Trump remain to be seen. The intersection of corporate leadership and political ambition continues to stir debate, particularly in an era where social media and public opinion play pivotal roles in shaping narratives.
