The world’s richest man Elon Musk is quietly scaling back his plans to launch a third political party and has said he wants to focus on his companies and avoid alienating powerful Republicans, The Wall Street Journal reported on Tuesday.

Musk had announced the formation of the "America Party" in early July, shortly after US President Donald Trump signed what he called a "big, beautiful" tax-cut and spending bill into law.

Musk, who had fiercely opposed the bill, had declared on X, “Today, the America Party is formed to give you back your freedom. By a factor of 2 to 1, you want a new political party and you shall have it!”

However, according to people familiar with the matter cited by the WSJ, Musk has since expressed reluctance to move forward, concerned that the party could siphon off GOP voters and strain his ties with Vice President J.D. Vance, seen as a potential heir to the MAGA political movement.

Musk has stayed in touch with Vance in recent weeks and has even considered backing him if he runs for President in 2028, the report said.

The billionaire has not definitively ruled out the idea and could revisit it closer to the midterm elections, his allies told the WSJ.

Still, Musk and his team have yet to engage with key figures who could provide crucial support in getting the party on the ballot in swing states.

Any retreat from the project would likely be welcomed by Republicans ahead of next year’s elections, since third parties have historically acted as spoilers by splitting votes.

For Vance, maintaining Musk’s backing could prove pivotal to his political ambitions. Musk’s political-action committee, America PAC, spent millions in battleground states such as Pennsylvania to boost Trump in 2024, underscoring his potential influence in future races.