WASHINGTON (AP) — Tech billionaire Elon Musk is quietly retreating from his public pledge to establish a new U.S. political party, tentatively named the “America Party,” according to reports from The Wall Street Journal on Tuesday, August 19, 2025. This apparent shift comes after Musk’s earlier declaration in July that he would form a third party to challenge the dominant Democratic and Republican establishments.
Sources familiar with the matter indicate that Musk’s companies, including Tesla and SpaceX, have experienced challenges while his focus was diverted to political endeavors. This has reportedly led to urgings for him to prioritize his businesses, The Wall Street Journal reported.
Musk announced the formation of the “America Party” on July 5, 2025, via his social media platform X, following a poll where a majority of his followers expressed a desire for a new political alternative. This move was made amidst a public disagreement with President Donald Trump over the “One Big, Beautiful Bill,” a comprehensive budget legislation that Musk fiercely opposed, as reported by Al Jazeera. Musk had previously served in the Trump administration’s Department of Government Efficiency.
Despite his initial strong rhetoric about unseating lawmakers who supported the bill, Musk is now reportedly seeking to maintain a relationship with Vice President J.D. Vance, a prominent figure in the “Make America Great Again” movement. According to The Wall Street Journal, Musk has privately acknowledged that pursuing a new party could strain this relationship and is even considering financially supporting Vance should he run for president in 2028.
While Musk has not definitively ruled out reviving the party effort ahead of the 2026 midterm elections, his team reportedly canceled outreach to third-party organizers in July, and allies indicate he has not engaged with prominent figures who initially backed the idea. Libertarian Party leaders, who had hoped to join forces with Musk, have also noted a lack of communication. “It’s almost an eerie silence,” Libertarian National Committee chair Steven Nekhaila told The Wall Street Journal.
The initial announcement of the “America Party” was met with mixed reactions and raised questions about the practical challenges of ballot access and establishing a national political presence. Musk had previously suggested a narrower strategy of targeting a handful of Senate and House seats to gain leverage in Congress, as reported by The Economic Times. However, his current recalibration is seen by some Republicans as a win, as they feared a third party could potentially draw away voters in crucial battleground states.
