Elon Musk should focus on business, not politics, thinks Treasury Secretary Scott Bessent

A day after Elon Musk announced he was founding a new US political party, the move has triggered backlash from Trump administration officials and investors worried about his focus on Tesla.

Treasury Secretary Scott Bessent told CNN that Musk’s companies would likely prefer he focus on his corporate duties rather than a third-party campaign.

“I imagine that those boards of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities,” Bessent said.

He also cast doubt on Musk’s personal popularity with voters.

“The principles of DOGE [the Department of Government Efficiency] were very popular. I think if you looked at the polling, Elon was not.”

Musk’s split With Trump over tax and spending bill

Musk said on Saturday that he was establishing the America Party to oppose what he called the “big, beautiful bill,” a tax-cut and spending package signed by President Trump on Friday (July 4).

The legislation cuts taxes and increases spending on defense and border security. While Republicans hailed it as a growth engine, critics argue it will balloon the federal deficit.

Trump has publicly accused Musk of retaliating because the law eliminates green-energy credits that benefited Tesla’s electric vehicles.

Investor Backlash: ETF launch delayed

Musk’s announcement rattled the investing world.

Azoria Partners, an investment firm planning to launch the Azoria Tesla Convexity exchange-traded fund, said it would postpone the fund because Musk’s political ambitions conflicted with his role as CEO.

Azoria CEO James Fishback shared his frustration on X: “I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO.”

By Sunday, Fishback doubled down: “Elon left us with no other choice.”

Musk plans to target Republicans in midterms

Musk said the America Party will focus its efforts on unseating Republicans in Congress who supported the tax bill in next year’s midterm elections.

Although Musk, as a foreign-born US citizen, is barred from running for President, he remains legally allowed to fund third-party candidates and assist them in securing ballot access nationwide.