Musk should focus on business, says U.S. Treasury chief

U.S. Treasury Secretary Scott Bessent has urged Elon Musk to steer clear of politics and prioritise his companies, after the Tesla CEO announced the formation of a new political party in defiance of President Donald Trump.

Speaking on CNN’s State of the Union on Sunday, Bessent said the boards of Tesla and SpaceX were likely concerned about Musk’s decision to launch the 'America Party,' which he unveiled a day earlier in response to Trump’s newly signed tax-and-spending bill.

“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.

Musk, who was once a prominent Trump supporter and served briefly as a government adviser, broke with the president over the so-called 'big, beautiful bill,' which cuts taxes and increases defence and border spending. He warned that the bill could bankrupt the country and vowed to challenge Republican incumbents who supported it in next year’s midterm elections.

Trump has dismissed Musk’s criticism, suggesting his opposition stems from the bill’s removal of green-energy tax credits that benefit Tesla. The president has also threatened to cut government contracts and subsidies to Tesla and SpaceX in retaliation.

The feud marks a dramatic turn in the relationship between Trump and Musk, who previously contributed millions to Trump’s 2024 re-election campaign and was a frequent visitor to The White House.

Musk’s political ambitions have already drawn investor backlash. Azoria Partners, which was set to launch a Tesla-focused exchange-traded fund this week, announced it would postpone the launch, citing conflict with Musk’s “full-time responsibilities” as Tesla CEO. Azoria CEO James Fishback publicly urged the Tesla board to review Musk’s political involvement.

“Elon left us with no other choice,” Fishback wrote on X, the social media platform owned by Musk.

White House spokesperson Harrison Fields praised the tax bill’s passage and played down Musk’s opposition.

“President Trump has unified and grown the party in a way we’ve never seen,” he said.

Stephen Miran, chair of Trump’s Council of Economic Advisers, defended the legislation on ABC’s This Week, calling it a growth driver: “The one, big, beautiful bill is going to create growth on turbo charge.”

Democrats, meanwhile, welcomed the Republican rift. Abhi Rahman of the Democratic National Committee said the conflict revealed fractures in the Trump coalition. “Republicans are waking up and facing the reality that they just signed their own pink slips,” he said.

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