WASHINGTON — U.S. Treasury Secretary Scott Bessent criticized Elon Musk on Sunday, urging him to focus on running his companies instead of launching a political movement. The comments come a day after Musk unveiled his new “America Party” in a dramatic break from former ally President Donald Trump.
Musk’s political move sparked backlash from both government officials and investors. Azoria Partners, an investment firm that had planned to launch a Tesla-linked fund, announced it was postponing the initiative, citing concerns over Musk’s ability to juggle politics with his role as Tesla CEO.
Speaking on CNN’s “State of the Union,” Bessent said the boards at Tesla and SpaceX likely disapproved of Musk’s political pivot. “I imagine they’ll want him back in the boardroom, not the campaign trail,” he said.
Musk, once a close Trump adviser during the early days of the 2025 administration, turned against the president over a sweeping tax-cut and spending package. He claimed the bill would bankrupt the country and vowed to challenge supportive GOP lawmakers in the 2026 midterms.
Despite the fallout, the White House dismissed the feud, calling the bill’s passage a sign of party unity. Spokesperson Harrison Fields said, “President Trump has never been stronger as the Republican leader.”
Musk had previously donated heavily to Trump’s re-election and made frequent White House visits. But their relationship soured after the new law eliminated green-energy credits, which affected Tesla’s bottom line. Trump retaliated by threatening to cut off government contracts and subsidies for Tesla and SpaceX.
Azoria Partners CEO James Fishback took to X to express disappointment, urging Tesla’s board to reconsider Musk’s dual focus. “He needs to clarify whether he’s a CEO or a political candidate,” Fishback said.
Meanwhile, Trump economic adviser Stephen Miran defended the bill, calling it “growth on turbo charge” during an ABC interview.
Democrats, for their part, welcomed the GOP infighting. “The MAGA movement is fracturing,” said DNC spokesperson Abhi Rahman, adding that Republicans were “desperately looking for someone to blame” for the controversial budget.