Elon Musk Seems To Have Come To His Senses About The ‘America Party’

Tech titan and former special government employee Elon Musk vowed to start a third party to challenge his old boss, President Donald Trump, but insiders tell the Daily Caller that Musk’s plans have faded almost as quickly as they were conceived.

Musk left the federal government frustrated with the MAGA coalition after the passage of Trump’s “Big Beautiful Bill.” The bill did not cut spending as much as he preferred and he vowed in a series of tweets to primary anyone who voted in favor of the legislation. Musk said he was creating a new, third party called the “America Party.”

But Musk hasn’t even mentioned the effort in over a month, and insiders told the Daily Caller that it seems Musk has begun to realize just how difficult what he pledged to do would be.

“I think Elon recognizes that the president was right in calling it a ‘ridiculous stunt.’ It would do nothing to advance the issues that Elon cares about — many of which I care about as well, many of which the president has cared about — but it would only create an opportunity for the Democrats to win back the House or the Senate,” James Fishback, a former adviser to the Department of Government Efficiency (DOGE) who launched a PAC to counter the third party threat, told the Caller. 

One month after Musk ostensibly started the America Party, seemingly in an effort to sabotage Trump and Republicans’ 2026 midterm chances, a source familiar with the White House’s thinking told the Caller that Musk’s third party isn’t even on their radar. 

A Trump world source confirmed to the Caller that they had not received any indication that the White House is concerned about Musk’s threat, as Musk hasn’t even talked about it since July 6 when Trump slammed the party as “ridiculous.” 

“Every conversation I’ve had is people are just, like, we don’t know what the hell he’s actually thinking. And no one has outlined a solid plan from him on what he’s actually trying to do, it’s just been Twitter polls,” the Trump world source told the Caller. 

Fishback told the Caller that since Musk created the party there has not been a single indication, such as declared or interested candidates, that the Tesla CEO even wants to go through with the effort.

“As someone who has worked with Elon, who has had the opportunity to be an investor in Tesla from very early on, I can tell you that I’m more interested in what he does than what he says, because he says a lot of things,” Fishback told the Caller. 

“But the truth of the matter is that I’m not worried about it at all, because it doesn’t look like the America Party is going to happen,” he concluded.

Fishback points to one main reason why he believes Musk might have seemingly abandoned the party.

“Make no mistake, there is a real threat to both Elon and to his businesses if the Democrats were to regain control. That’s a message that I shared privately with Tesla executives, and that may have been part of the reason why he attenuated his positioning on that,” Fishback told the Caller, warning that the America Party has the power to hurt Republicans if it actually gets off the ground.

Musk spent just about 130 days as a special employee of the federal government running DOGE, a landmark effort to slash waste in federal spending. Before returning to the private sector, Musk gave a final press conference with Trump in the Oval Office, where he was awarded the key to the White House.

Days later, Musk snapped publicly on Trump via X, calling out the president’s landmark legislation, the “Big, Beautiful, Bill.” (RELATED: EXCLUSIVE: White House Insiders Vent On Big Beautiful Breakup, Reveal Elon’s Final Straw)

If this insane spending bill passes, the America Party will be formed the next day.

Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.

— Elon Musk (@elonmusk) June 30, 2025

Independence Day is the perfect time to ask if you want independence from the two-party (some would say uniparty) system!

Should we create the America Party?

— Elon Musk (@elonmusk) July 4, 2025

Trump threatened to pull Musk’s contracts with the federal government, perhaps even under the waste-cutting efforts of DOGE.

“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote in a Truth Social post. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”

The public blow-up led to fears among Republicans that Musk could turn his financial firepower on the president. At Musk’s first mention of the creation of the America Party, conservative pundits shared Fishback’s concerns about it hurting the GOP and seemed worried that it could divide the MAGA movement.

“It’s harder than it looks to start a political party. And, you know, we’ll see where they go with it. My humble advice to Elon, who I admire very much, actually, is that you may be dividing the forces of people who want to save Western civilization to the benefit of the people who don’t,” CNN senior political commentator Scott Jennings said on July 6.

One Trump world source told the Caller that they have been in a “wait and see” pattern as they anticipate whether Musk is actually going to go through the work of creating a third party, such as recruiting congressional candidates, getting them on the ballot in different states and then funding them.

US President Donald Trump shakes hands with Elon Musk after Trump gifted him with a “key to the White House” during a news conference in the Oval Office of the White House in Washington, DC, on May 30, 2025. (Photo by ALLISON ROBBERT/AFP via Getty Images)

And while there is no indication the White House is paying attention to Musk’s America Party, one Trump world source pointed to a potential problem that could arise should the Tesla chief change his mind.

The source told the Caller that they worry there could be bad actors around Musk encouraging him to take on the monster task of creating a third party, which would ultimately lead to a distraction for Republicans to deal with ahead of the midterms. 

While Musk’s third party appears to be inactive at the moment, his political action committee (PAC), Building America’s Future, is going in a different direction.

After repeatedly denouncing the “Big Beautiful Bill” the PAC dished out $1 million to promote the law, according to Politico. But what if Musk decides to ditch his third party and use Building America’s Future to back candidates he wants to take on the GOP? (RELATED: Musk Turns Up Heat On Trump, Throws Support Behind GOP Rebel Massie)

“If it’s Elon’s wall of money versus the president’s endorsement, I’ll bet on the president’s endorsement every single time,” the Trump world source told the Caller.