Bessent Throws Cold Water on Musk’s “America Party,” Urges Focus on Tesla as Investor Anxiety Grows

The American secretary of the Treasury, Scott Bessent, responded coldly to the announcement by Elon Musk of his new “America Party”, urging the billionaire to prioritize his commercial responsibilities on political ambitions.

His comments came on Sunday during a CNN interview, one day after Musk unveiled plans for a third-party movement to disturb what he called the “single party system” of the United States.

When he was asked if the Trump administration had been shaken by Musk’s decision, Bessent offered a diplomatic but pointing response: “I believe that the boards of directors of his various companies wanted him to return and direct these companies, which he is better than anyone,” he said.

“I therefore imagine that these advice did not like this announcement yesterday and will encourage it to focus on its commercial activities, not its political activities.”

The reprimand underlines an increase in discomfort within the White House and the financial markets concerning the increase in the Musk foray into politics – a decision that certain investors believe at a high cost for its companies, in particular Tesla.

The CEO had gone earlier this year to return to the office – a development that saw Tesla’s share.

“Back to spend 24/7 at work and sleep in factory / server rooms. I must be super focused on X, Xai and Tesla (plus the launch of Starship next week) because we have critical technologies,” Musk said

A bitter splitting

Musk and Trump were once politically aligned, chief Tesla and SpaceX donating more than $ 280 million to Trump’s presidential campaign in 2024 – the most of all the individual donors that brought. He even joined the Trump administration’s budget cut campaign, towards the so-called Ministry of Government Effectiveness (DOGE) before resigning in May.

But the relations between the two festivocked after Trump adopted a national political bill with tax loss of several dollars and massive social services reductions. Musk paraded the bill as recklessly reckless, appealing it a package of “porky pig” which would explode the national debt.

Since then, Musk has publicly sworn to fight against the legislators who have supported the legislation. Its creation of the “American party” is largely considered as a political counterpart against the two parties – and especially against the tight grip of Trump on the GOP.

Investors are wary of Musk’s political drift

While Musk’s political supporters welcomed his move as a bold position against the establishment, Tesla investors and her other companies were much less enthusiastic.

Wedbush Securities analyst Dan Ives, a longtime Tesla Bull, said that Musk’s political foray is exactly what shareholders did not want to see for the moment.

“Musc diving more deeply in politics and now trying to take care of Beltway’s establishment is exactly the opposite direction that Tesla’s investors / shareholders want it to take during this crucial period for Tesla’s history,” said Ives.

“While the basic supporters Musc will support musk on each turn whatever happens, there is a wider feeling of exhaustion of many Tesla investors that Musk continues to descend on the political track.”

Ives said that the “initial relief” felt by shareholders after Musk Left Doge has now “taken a turn for the worst”, in particular with Musk who now moves towards the foundation of a new political force.

In exchanges after opening hours on Sunday, Tesla’s actions fell 0.85%, reflecting market tremors on musk double roles and growing distractions “,” Stock Mom, an investor of Tesla, wrote.

Survey problem

Bessent has recognized that some of the principles that Musc defended in Doge – namely efficiency, leaner government and responsibility – were “very popular”. But he did not extend the same praise to the political profile of Musk.

“I think if you were looking at the ballot, Elon was not,” he said.

This line reflects a broader challenge for musk: while his technological character commands admiration, his political brand remains polarizing. A recent survey of the University of Quinnipiac revealed that if the majority of Americans admire the entrepreneurial achievements of Musk, only 29% said they would consider supporting a political party led by him.

What is the next step for Musk and “America Party”?

Currently, Musk has not recorded the “America Party” with the Federal Electoral Commission. He suggested that the group could concentrate its resources on a narrow set of races in the Senate and the Chamber to exert an influence in a strongly divided congress.

He said on Saturday that targeting “only 2 or 3 seats in the Senate and 8 to 10 districts of the Chamber” would be enough to swing key votes on controversial legislation – a clear signal that Musk wants to take advantage of his money and his platform as an electric broker rather than a traditional party leader.

However, political analysts are skeptical about the fact that Musk can carry out the type of electoral insurrection he plans. The construction of a viable third in the United States has proven practically impossible in modern history, in particular without basic infrastructure or bipartisan support.

An expensive diversion?

At a time when Tesla was struggling with a drop in deliveries, increased competition from manufacturers of Chinese electric vehicles like Byd and a slow EV market in the world, the growing political participation of Musk is considered by many as an unwanted distraction.

With the actions of Tesla under pressure and Ai Ventures as Xai always at the first stages, even some of the faithful shareholders of Musk wonder if his accent on politics risks the very companies that have earned him his platform.

Eva McMillan, a Tesla shareholder asked Musk on Sunday: “Elon, what happened to your promises to spend 24/7 at work? How are you going to adapt to a full-time policy?”

Although there seems to be growing support for the America party, including billionaire investor Mark Cuban, the market and the administration send a message to Musk: run your businesses, not part.