Musk has put his plan to form a new political party on hold to focus on company affairs and maintain his ties with the Republican Party.

Billionaire Tesla CEO Elon Musk is quietly putting his plans to form a new political party on hold, according to people familiar with the matter.

Musk has told allies that he wants to focus on his company and is reluctant to alienate powerful Republicans by forming a third party that could divert votes from the Republican base. Musk's stance marks a shift in stance.

Earlier last month, Musk said he would form the so-called American Party to represent American voters dissatisfied with the two major political parties. As he considers forming a new party, Musk is partly focused on maintaining his relationship with U.S. Vice President Cyril Vance, who is widely seen as a potential successor to the "MAGA" political movement.

People familiar with the matter said Musk has been in contact with Vance in recent weeks and admitted to aides that if he proceeds with forming a party, it would damage his relationship with the vice president.