By Stabroek News
WASHINGTON, (Reuters) 鈥 A day after Elon Musk escalated his feud with Donald Trump and announced the formation of a new U.S. political party, the Republican president鈥檚 Treasury secretary said Musk should stick to running his companies.
In addition, investment firm Azoria Partners, which had planned to launch a fund tied to Musk鈥檚 electric automaker Tesla (TSLA.O) said it was delaying the venture because the party鈥檚 creation posed 鈥渁 conflict with his full-time responsibilities as CEO.鈥
Musk announced on Saturday that he is establishing the 鈥淎merica Party鈥 in response to Trump鈥檚 tax-cut and spending bill, which Musk said would bankrupt the country.
Speaking on the CNN program 鈥淪tate of the Union鈥 on Sunday, Treasury Secretary Scott Bessent said the boards of directors at Musk鈥檚 companies 鈥 Tesla and rocket firm SpaceX 鈥 probably would prefer him to stay out of politics.
鈥淚 imagine that those boards of directors did not like this announcement yesterday (Saturday) and will be encouraging him to focus on his business activities, not his political activities,鈥 Bessent said.
Musk, who served as a top adviser to Trump on downsizing and reshaping the federal government during the first few months of his presidency, said his new party would in next year鈥檚 midterm elections look to unseat Republican lawmakers in Congress who backed the sweeping measure known as the 鈥渂ig, beautiful bill.鈥
The White House did not directly address the threat made by Musk but said the bill鈥檚 passage showed that the Republican Party is in strong shape.
鈥淎s the leader of the Republican Party, President Trump has unified and grown the party in a way we鈥檝e never seen,鈥 White House spokesperson Harrison Fields said.
Musk spent millions of dollars underwriting Trump鈥檚 2024 re-election effort and, for a time, regularly showed up at the president鈥檚 side in the White House Oval Office and elsewhere. Their disagreement over the spending bill led to a falling out that Musk briefly tried unsuccessfully to repair.
The bill, which cuts taxes and ramps up spending on defense and border security, passed last week on party-line votes in both chambers of Congress. Critics have said it will damage the U.S. economy by significantly adding to the federal budget deficit.
Trump has said Musk is unhappy because the measure, which Trump signed into law on Friday, takes away green-energy credits for Tesla鈥檚 electric vehicles. The president has threatened to pull billions of dollars Tesla and SpaceX receive in government contracts and subsidies in response to Musk鈥檚 criticism.
Bessent suggested that Musk holds little sway with voters who, according to the treasury chief, liked the Department of Government Efficiency that Musk spearheaded more than they liked the world鈥檚 wealthiest person himself.
鈥淭he principles of DOGE were very popular,鈥 Bessent said. 鈥淚 think if you looked at the polling, Elon was not.鈥
Musk鈥檚 announcement of a new party immediately brought a rebuke from Azoria Partners, which said on Saturday it will postpone the listing of its Azoria Tesla Convexity exchange-traded fund. Azoria was set to launch the Tesla ETF this week.
Azoria CEO James Fishback posted on X several critical comments about the new party and reiterated his support for Trump.
鈥淚 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,鈥 Fishback said.
On Sunday, Fishback added on X, 鈥淓lon left us with no other choice.鈥
Stephen Miran, the chairman of Trump鈥檚 Council of Economic Advisers, defended the tax-cut bill on ABC鈥檚 鈥淭his Week鈥 program.
鈥淭he one, big, beautiful bill is going to create growth on turbo charge,鈥 Miran said.
The Democratic Party appeared to welcome the rift between Trump and Musk.
鈥淭rump鈥檚 MAGA party is splitting at the seams in the wake of his nightmare budget bill,鈥 said Abhi Rahman, a spokesperson for the Democratic National Committee.鈥漅epublicans are waking up and facing the reality that they just signed their own pink slips, and are desperate for someone else to blame.鈥