Elon Musk is stepping back from plans to establish a new political party, just weeks after informing his 200 million followers that the American Party would be his answer to the troubled two-party system.

According to the Wall Street Journal, Elon has begun telling close associates that he does not want to risk hurting senior Republican officials by splitting conservative votes, especially with Donald Trump's return and JD Vance positioned as the ideal successor.

In private conversations, Elon acknowledged that proceeding with the party formation plan would strain his relationship with Vance, who is now the vice president. He has kept in touch with Vance in recent weeks and even floated the idea of providing financial support if Vance runs in 2028.

Elon has spent nearly $300 million on Republican campaigns in 2024, and those familiar with the conversation say he intends to do the same for Vance.

At the end of July, Elon canceled a scheduled call with a group specializing in forming third parties, and The Journal reported that his team informed attendees that the meeting was canceled because Elon wanted to focus on his companies.

The decision not to move forward temporarily benefits the Republicans. Third parties often siphon votes away from major opponents, and an American Party backed by Elon could have drained support from Trump’s allies.

This includes Vance, who said earlier this month that abandoning Trump and the conservative movement would be "a mistake." He told The Gateway Pundit, "So my hope is that by the time of the midterm elections, he will be back."

Both Trump and Elon have gradually eased the tension between them. Not long ago, Elon distanced himself from Trump after criticizing his spending package and stating that the former president would not be able to win without his support.

Since then, both have toned down their public criticism. Trump wrote on Truth Social that he wants Elon and his companies to "prosper," calling it a good thing for the country.

Elon has stopped publicly criticizing Trump, and Trump has posted on Truth Social that he wants Elon and his companies to "prosper," calling it a good thing for the country.

Those who supported Elon’s idea of an American Party have not heard anything either. Andrew Yang confirmed he has discussed with Elon’s team about the American Party but has not shared any details. Mark Cuban, who supported the idea after Elon’s announcement in July, said he has not had any conversations with Elon or his team since then.

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