Treasury secretary reacts to America Party launch, says Musk should go about his business
Scott Bessent's criticism contributes to a growing concern within the Republican environment about the role the tech mogul intends to play in the political debate.
Bessent on Capitol Hill/Brendan Smialowski
U.S. Treasury Secretary Scott Bessent publicly expressed his disagreement with Elon Musk's political foray and suggested that the entrepreneur should focus on his responsibilities as the leader of companies like Tesla and SpaceX. "I imagine that those boards of directors did not like this announcement and will be encouraging him to focus on his business activities, not his political activities," Bessent said Sunday during an interview.
His statement comes just a day after Musk announced the creation of the America Party, a political formation that aims to challenge Republican lawmakers who supported the new tax bill proposed by President Donald Trump.
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Internal tensions after break with Trump
Bessent's criticism adds to a growing concern in the Republican environment about the role the tech mogul intends to assume in the political debate. Musk, who in the past collaborated with the Trump administration as an adviser on reducing the government apparatus, now accuses the president of pushing the country toward a fiscal crisis with his so-called Big, Beautiful Bill.
The bill, passed last week with the backing of the Republican bloc, combines tax cuts with substantial increases in defense and border security spending. It also eliminates key tax benefits for electric vehicles, directly affecting Tesla.
Immediate reaction from the financial world
Musk's announcement prompted swift responses from the financial sector. Azoria Partners, an investment firm planning to launch a Tesla-linked fund this week, has decided to postpone its launch, citing a potential conflict of interest. "I encourage the Board to meet immediately and ask Elon to clarify his political ambitions," Azoria CEO James Fishback wrote on the social networking site X.
Fishback, who has voiced support for Trump, felt that the creation of the new party could compromise Musk's focus and availability for his corporate roles, particularly as CEO of Tesla.
Musk's political assessment
The future of the America Party is still uncertain. However, the message from the Treasury and the private sector is clear: politics may not be the ideal arena for Musk, especially when his involvement generates unease among his economic allies and within his own party.
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