Elon Musk's Political Ambitions Face Backlash from Officials and Investors

Elon Musk's recent foray into politics has prompted significant backlash from major U.S. officials and investors, following his declaration of a new political party called the "America Party." This move has sparked controversy, particularly after Musk criticized President Donald Trump's recent tax and spending bill, which he claims poses a fiscal threat to the country. In light of these developments, Treasury Secretary Scott Bessent and leading stakeholders have urged Musk to concentrate on his corporate obligations instead of political pursuits.

Bessent made his thoughts clear just a day after Musk's announcement, suggesting that board members of Musk's companies were likely unhappy and would prefer him to remain focused on business matters. The planned America Party aims to challenge Republican lawmakers supporting what Musk calls a dangerous fiscal measure—legislation that includes tax cuts and increased spending on defense and border security, which was recently passed along party lines.

Musk's relationship with Trump has deteriorated following the unveiling of the "big, beautiful bill," which he argues could lead to the country's financial ruin. His critiques include concerns that the legislation will eliminate green energy tax credits benefiting Tesla vehicles. In reaction to Musk's political ambitions, Trump has threatened to rescind substantial contracts and subsidies for Tesla and SpaceX, while the White House has chosen not to directly engage with Musk's political challenges, instead defending the bill and commending Trump's leadership of the Republican Party.

The announcement of Musk's political initiative has also unsettled the financial realm, leading Azoria Partners, an investment firm set to introduce a Tesla-focused ETF, to postpone its launch. The CEO expressed that Musk's political aspirations create a conflict with his duties as CEO. Amid these developments, Bessent expressed that while Musk's efforts to improve government efficiency were recognized positively, public opinion polls showed that voters were more in favor of the concepts than of Musk himself. Meanwhile, Stephen Miran, chair of Trump’s Council of Economic Advisers, defended the controversial legislation, asserting it would significantly enhance economic growth.