Musk should stay out of politics, US Treasury Secretary Bessent says
Treasury chief Scott Bessent (left) told CNN on July 6 that billionaire Elon Musk, who is setting up a political party, should stick to running his companies.
WASHINGTON - A day after Elon Musk escalated his feud with Donald Trump and announced the formation of a new US political party, the president's Treasury secretary said Mr Musk should stick to running his companies.
And investment firm Azoria Partners, which had planned to launch a fund tied to Mr Musk's automaker Tesla, said it was delaying the venture because the party's creation posed 'a conflict with his full-time responsibilities as CEO'.
Mr Musk said on July 5
he was establishing the 'America Party' in response to Mr Trump's tax-cut and spending Bill, which Mr Musk claimed would bankrupt the country.
Speaking on CNN on July 6, Treasury chief Scott Bessent said the boards of directors at Mr Musk's companies – Tesla and rocket firm SpaceX – likely would prefer him to stay out of politics.
'I imagine that those boards of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities,' Mr Bessent said.
Mr Musk, who served as a top adviser to the White House on trimming the size of government during the first few months of Mr Trump's presidency, said his new party would in 2026's midterm elections look to unseat Republicans in Congress who backed the 'big, beautiful Bill'.
Mr Musk spent millions of dollars underwriting Mr Trump's re-election effort and for a time, regularly showed up at the president's side in the Oval Office and elsewhere. Their disagreement over the spending Bill led to
a falling out that Mr Musk briefly tried unsuccessfully to repair.
The Bill, which cuts taxes and ramps up spending on defence and border security,
passed last week on party-line votes in both chambers. Critics argue it will damage the economy by significantly adding to the federal budget deficit.
Mr Trump has said Mr Musk is unhappy because the Bill, which Mr Trump
signed into law on July 4, takes away green-energy credits for Tesla's electric vehicles. The president has threatened to pull billions of dollars Tesla and SpaceX receive in government contracts and subsidies in response to Mr Musk's criticism.
Mr Bessent suggested Mr Musk holds little sway with voters who, he said, liked his Department of Government Efficiency (Doge) more than him.
'The principles of Doge were very popular,' Mr Bessent said. 'I think if you looked at the polling, Elon was not.'
Investor rebuke
Mr Musk's announcement immediately brought a rebuke from Azoria Partners, which said on July 5 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 Mr Trump.
'I 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,' Mr Fishback said.
On July 6, Mr Fishback added on X, 'Elon left us with no other choice.'
The White House did not respond to a request for comment on Mr Musk's announcement, but Mr Stephen Miran, the chairman of Trump's Council of Economic Advisers, defended the Bill on ABC's This Week.
'The one, big, beautiful Bill is going to create growth on turbo charge,' Mr Miran said. REUTERS
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Straits Times
21 minutes ago
- Straits Times
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Sign up now: Get ST's newsletters delivered to your inbox The flag of China is placed next to the elements of gallium and germanium on a periodic table, in this illustration picture taken on July 6, 2023. REUTERS/Florence Lo/Illustration/File Photo BEIJING - Unusually large quantities of antimony - a metal used in batteries, chips and flame retardants - have poured into the United States from Thailand and Mexico since China barred U.S. shipments last year, according to customs and shipping records, which show at least one Chinese-owned company is involved in the trade. China dominates the supply of antimony as well as gallium and germanium, used in telecommunications, semiconductors and military technology. Beijing banned exports of these minerals to the U.S. on December 3 following Washington's crackdown on China's chip sector. 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Straits Times
21 minutes ago
- Straits Times
China's gig economy booms as blistering heat leaves workers exposed
Sign up now: Get ST's newsletters delivered to your inbox While eligible by law to receive a "heat wave allowance", many food delivery drivers have never received them. On a scorching morning in Beijing, Mr Hao and a dozen other food delivery drivers sweltered outside a hot-pot restaurant. They smoked. They swiped through videos. They waited for the next round of lunch orders from people wise enough to stay indoors. Mr Hao, like most of China's 200 million gig workers, is eligible by law to receive a 'heat wave allowance,' or danger money for those required to work for hours in extreme heat conditions. Mr Hao should be paid at least 180 yuan (S$32) per month when the heat crosses 35 deg C . The city had already breached that, with the mercury heading fast toward 40 deg C that week. But he has not seen a penny. 'I've never heard of a company benefit for working in a heat wave,' said Mr Hao, who has been clocking 10 hour days on his scooter for five years now. 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AsiaOne
30 minutes ago
- AsiaOne
From 'fantastic' to 'spoiled': How Japan's trade effort to woo Trump backfired, World News
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