Elon Musk Halts Plans for US Political Shake-Up

Elon Musk's political ambitions hit a sudden roadblock—again proving that even billionaires can't buy their way out of regulatory gridlock.

THE UNEXPECTED PAUSE

Musk shelved his latest Washington power play, leaving political insiders and market watchers scrambling. No explanation, no timeline—just radio silence from the Tesla chief's camp.

MARKETS BARELY BLINK

Tesla stock dipped half a percent. Crypto? Barely a ripple. Because when you've survived SEC investigations and Twitter buyout drama, a little political theater barely registers.

THE REAL PLAY

Smart money says this isn't about quitting—it's about repositioning. Musk doesn't retreat; he just finds better angles of attack. Watch for the pivot toward crypto-friendly candidates instead.

Because let's be real—when traditional politics fails, decentralized finance starts looking pretty damn appealing.

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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.