BY COMFORT OGBONNA
President Donald Trump on Sunday publicly dismissed Elon Musk’s announcement of a new political party, calling the idea “ridiculous” and accusing the tech billionaire of losing focus. Trump, speaking to reporters before boarding Air Force One in Morristown, New Jersey, criticized Musk’s political maneuvering and warned of the potential conflicts of interest tied to Musk’s deep involvement in space-related ventures.
The former allies have turned into political adversaries in recent weeks, with tensions reaching a boiling point after Musk announced the formation of what he is calling the “America Party.” The announcement came just one day after Musk openly rebuked Trump’s latest tax and spending legislation, a sweeping economic package that Musk warned would drive the United States deeper into debt. Musk, once a close Trump ally and major campaign donor, is now positioning himself and his newly formed political movement in direct opposition to the current Republican leadership.
In response to Musk’s move, Trump criticized the idea of a third party, arguing that the United States’ political structure was not built to support more than two dominant parties. “I think it’s ridiculous to start a third party. We have had tremendous success with the Republican Party,” Trump said. “The Democrats have lost their way, but it’s always been a two-party system, and I think starting a third party just adds to confusion. It really seems to have been developed for two parties. Third parties have never worked, so he can have fun with it, but I think it’s ridiculous.”
Trump’s criticism didn’t stop there. Later that evening, he took to his Truth Social platform to share further remarks, writing, “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.”
Musk has not held back either. In a post on X (formerly Twitter), he mocked Trump’s fiscal policy, specifically pointing to what he sees as reckless spending. “What the heck was the point of @DOGE if he’s just going to increase the debt by $5 trillion??” Musk wrote, referencing the downsizing agency he briefly led, and which was intended to streamline government spending. Musk argued that Trump’s signature legislation, which he dubbed the “big, beautiful bill,” would cripple the economy and saddle future generations with unsustainable debt.
Musk stated that the America Party intends to target Republican lawmakers who supported the controversial bill, with plans to run candidates in next year’s midterm elections. His plan is to disrupt what he describes as “entrenched complacency” in both major parties and push for a radical fiscal overhaul. While such a goal may appear ambitious, it marks a significant shift in the political landscape and threatens to splinter parts of the conservative base.
This political feud marks a remarkable change in the once-friendly dynamic between the two men. Musk previously stood as one of Trump’s most visible supporters in the business world, contributing heavily to his re-election campaign and frequently appearing with him at the White House. However, their relationship soured following the passage of Trump’s economic package, particularly its removal of green-energy tax credits, which directly affected Tesla’s business model.
Trump has also threatened to rescind government contracts and subsidies awarded to both Tesla and SpaceX in retaliation for Musk’s public criticism. “He’s angry about the credits being cut, and I understand that,” Trump said. “But I don’t think you burn the country down just because you didn’t get your way.”
The controversy has extended into Trump’s recent staffing decisions. The president confirmed reports that he withdrew the nomination of Jared Isaacman—a private astronaut and longtime Musk associate—to lead NASA. Isaacman’s appointment in December raised eyebrows in Washington due to his close personal and business ties to Musk, whose companies rely heavily on NASA contracts. On Sunday, Trump said he had second thoughts about Isaacman’s nomination because of his affiliations with the Democratic Party and the perceived conflict of interest.
“I also thought it inappropriate that a very close friend of Elon, who was in the space business, run NASA, when NASA is such a big part of Elon’s corporate life,” Trump wrote on Truth Social. “My Number One charge is to protect the American Public!”
The fallout from Musk’s political ambitions has already begun to ripple through the financial sector. Azoria Partners, an investment firm set to launch a Tesla-related exchange-traded fund (ETF) this week, announced it would delay the rollout due to concerns over Musk’s shifting focus. The CEO of Azoria, James Fishback, issued a statement urging the company’s board to seek clarification from Musk regarding his political intentions and assess whether they are compatible with his full-time responsibilities as Tesla’s CEO.
“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,” Fishback posted on X, adding that he remained firmly supportive of Trump.
As the clash intensifies, both men appear entrenched in their positions. The growing feud between Trump and Musk signals a deepening fracture within the Republican orbit and raises questions about the future of political alliances in a shifting American landscape. Whether Musk’s America Party will gain traction remains uncertain, but its mere announcement has already sparked political and economic tremors.