Tesla (TSLA) CEO Elon Musk is reportedly pausing his plans to launch a third U.S. political party. According to The Wall Street Journal, Musk is shifting his focus back to his business ventures, putting the America Party idea on hold for now. TSLA stock dropped 1.75% on Tuesday and slid another 1.24% in after-hours trading.
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Earlier in July, Musk announced plans to form a new political party following a public clash with President Donald Trump over the tax cut and spending bill. Musk said the party would offer voters greater ‘freedom.’
Musk Pulls Back to Keep GOP Allies Close
As Musk explored the idea of starting a political party, he was hesitant to upset influential Republicans by launching a third party that might draw away GOP (Grand Old Party) voters. Musk has also been careful to maintain his relationship with Vice President JD Vance, who is viewed as a possible successor to the MAGA (Make America Great Again) movement. According to sources, Musk has kept in contact with Vance in recent weeks, and launching a party could strain their relationship.
Additionally, the report, citing sources, stated that Musk is also considering financially backing U.S. Vice President JD Vance if he runs for president in 2028. Previously, Musk spent nearly $300 million backing Trump and other Republicans in the 2024 election.
Nonetheless, close sources added that Musk hasn’t officially ruled out forming a new party and could reconsider as the midterm elections approach.
Is Tesla a Buy, Sell, or Hold?
While Musk’s political ambitions draw headlines, investors remain focused on his core business, Tesla. Analysts are keeping a close eye on the company’s performance, with stock forecasts reflecting both growth potential and market uncertainties.
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buys, 15 Holds, and eight Sells assigned in the last three months. The average Tesla stock price target is $307.23, suggesting a potential downside of 7% from the current level.
