President Donald Trump has dismissed Elon Musk’s plan to launch a third political party as “ridiculous,” intensifying their ongoing rift. Speaking to reporters before departing New Jersey on Air Force One, Trump criticized Musk’s newly announced “America Party,” calling it a threat to the longstanding two-party U.S. system. “Third parties have never worked,” Trump said. “It just adds confusion.”
The clash follows Musk’s public opposition to Trump’s recently passed tax and spending bill, which Musk claims will add $5 trillion to the national debt. In a post on X, Musk asked, “What the heck was the point of @DOGE if he’s just going to increase the debt?” Musk said the new party will target Republican lawmakers who supported the bill in upcoming midterm elections.
Once a key supporter of Trump, even donating millions to his 2024 campaign, Musk has sharply turned on the president. Trump, in return, lashed out on Truth Social, calling Musk a “TRAIN WRECK” and accusing him of turning against the GOP over lost EV tax credits, which affect Tesla. Trump also hinted at possibly pulling billions in federal contracts from Musk’s companies, including Tesla and SpaceX.
Trump further criticized his previous nomination of Musk ally Jared Isaacman as NASA administrator, calling it “inappropriate” due to Isaacman’s close ties to Musk and involvement in the space industry. The nomination was quietly withdrawn in May.
In the fallout, Azoria Partners delayed its planned Tesla ETF launch, citing concerns over Musk’s political ambitions. CEO James Fishback urged Tesla’s board to review whether Musk can balance his political activities with his responsibilities as CEO.
The escalating feud signals a sharp divide between two of America’s most influential figures.