A day after tech mogul Elon Musk announced the formation of a new political party in a direct challenge to former President Donald Trump, U.S. Treasury Secretary Scott Bissent issued a blunt public message: “Stick to running your companies and leave politics to the politicians.”
The remark comes amid growing concern from investors and board members over Musk’s deepening political involvement. The announcement of Musk’s “America Party” over the weekend has already had immediate financial repercussions, including the postponement of a major investment initiative.
Investor Backlash and Delayed Deals
Azuria Partners, a private equity firm that had been planning to launch a Tesla-linked investment fund this week, said Sunday it would delay the project. In a statement, the firm cited “an inherent conflict between Mr. Musk’s executive responsibilities and the political ambitions he has now publicly declared.”
James Fishback, CEO of Azuria Partners and a known Trump supporter, took to X (formerly Twitter) to voice his disapproval. “Elon left us no choice,” Fishback posted, calling on Tesla’s board to convene an emergency meeting and demanding clarity on Musk’s political intentions.
Musk vs. Trump: From Allies to Rivals
The political clash marks a dramatic turn in the relationship between Musk and Trump. The two were once allies, with Musk playing a visible role during Trump’s re-election campaign and even advising on tech-related issues during his first term. But the recently passed “Big Beautiful Law”—Trump’s sweeping tax-cut and defense spending package—proved to be the final straw.
Musk blasted the law, warning it would "bankrupt the country" and disproportionately harm clean energy initiatives. His proposed party, the “America Party,” aims to challenge pro-Trump Republicans in the upcoming midterms.
Musk’s sharp pivot has reportedly alarmed board members at both Tesla and SpaceX, according to Secretary Bissent. “I imagine the boards were not thrilled with yesterday’s announcement,” Bissent said during a Sunday CNN interview. “They’ll likely encourage Elon to refocus on the business side.”
Trump Responds with Threats
President Trump, never one to leave a slight unanswered, claimed Musk’s outrage was rooted in the removal of electric vehicle tax incentives from the new law—an indirect blow to Tesla’s profit margins. Speaking to supporters at a rally in Ohio, Trump warned he might revoke billions of dollars in federal contracts and subsidies currently flowing to Musk’s companies.
“Tesla and SpaceX have made fortunes off the government,” Trump said. “If Elon wants to play politics, he better be ready to lose the perks.”
A Popular Department, An Unpopular Founder
Interestingly, despite the political turbulence, Musk’s earlier government initiative— the Department of Government Efficiency (DOGE), established during Trump’s administration—remains widely popular. But as Bissent noted, “Voters liked DOGE. They didn’t necessarily like Elon.”
Recent polling supports Bissent’s view, showing lukewarm public support for Musk as a political figure, despite his towering influence in the tech and automotive sectors.
What’s Next for Musk?
While the White House has not issued an official response, Trump's chief economic advisor Stephen Miran defended the controversial law during a separate interview with ABC. “The Big Beautiful Law will unleash economic growth,” he said.
Meanwhile, calls are growing within Tesla’s shareholder community for clarity and accountability. Whether Musk will double down on his political crusade or heed calls to step back remains unclear.
But as markets react and political tensions rise, one thing is certain: Elon Musk’s entry into politics has rattled not just Washington—but Wall Street, too.
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