WASHINGTON, D.C.: Elon Musk's entry into the political arena is drawing pushback from top U.S. officials and investors, as his decision to launch a new political party triggers fresh controversy and business fallout.

Treasury Secretary Scott Bessent and major stakeholders are urging Musk to focus on his corporate responsibilities.

A day after Musk unveiled plans for the "America Party" and criticized President Donald Trump's tax and spending bill, Bessent said Musk should avoid politics and focus on his companies.

"I imagine that those boards of directors did not like this announcement yesterday (July 5) and will be encouraging him to focus on his business activities, not his political activities," Bessent said on CNN's State of the Union.

Musk said the party would target Republican lawmakers who supported what he called a fiscally dangerous measure. The legislation, dubbed the "big, beautiful bill," includes tax cuts and increased spending on defense and border security. It passed along party lines last week.

Musk previously served as a top adviser to Trump during his first months in office, especially on government efficiency reforms. However, their relationship has soured over the bill, which Musk says would "bankrupt the country." His criticism includes claims that the new law removes green energy credits for Tesla vehicles.

In response, Trump has threatened to withdraw billions of dollars in contracts and subsidies currently awarded to Tesla and SpaceX. The White House declined to address Musk's new political threat directly but defended the legislation.

"As the leader of the Republican Party, President Trump has unified and grown the party in a way we've never seen," said White House spokesperson Harrison Fields.

Musk's announcement also rattled financial circles. Azoria Partners, an investment firm planning to launch a Tesla-focused ETF, delayed its offering. CEO James Fishback said the new party "posed a conflict with his full-time responsibilities as CEO."

Fishback later posted on X, "Elon left us with no other choice," and called on Tesla's board to clarify Musk's political ambitions.

Bessent noted that while Musk's government efficiency initiatives were well received, polling showed voters connected more with the ideas than with Musk himself.

"The principles of DOGE were very popular," Bessent said. "I think if you looked at the polling, Elon was not."

Meanwhile, Stephen Miran, chair of Trump's Council of Economic Advisers, defended the legislation on ABC's This Week, calling it a powerful catalyst: "The one, big, beautiful bill is going to create growth on turbo charge."