U.S. President Donald Trump has slammed Elon Musk’s newly announced “America Party,” calling the move “ridiculous” and accusing the tech billionaire of going “off the rails.” Speaking to reporters before boarding Air Force One in New Jersey, Trump dismissed the idea of a third party, insisting the U.S. system is built for two dominant political forces.
“I think it’s ridiculous to start a third party,” Trump said. “Third parties have never worked. All they do is add confusion and chaos.”
The rebuke came a day after Musk unveiled plans for the America Party, citing his opposition to Trump’s recently signed tax-cut and spending bill. Musk, who had once been a close adviser and major financial backer of Trump’s 2024 campaign, warned that the legislation – dubbed the “big, beautiful bill” – would bankrupt the country. His new party aims to challenge Republicans who supported the measure in the upcoming 2026 midterm elections.
Trump responded further on his social media platform, claiming Musk’s political shift stems from the removal of green energy credits for Tesla under the new law. He also warned that government contracts and subsidies for Musk’s companies, including Tesla and SpaceX, could be in jeopardy.
Treasury Secretary Scott Bessent weighed in on CNN, suggesting Tesla and SpaceX board members would prefer Musk stay out of politics. Meanwhile, investment firm Azoria Partners postponed a Tesla-linked ETF launch, citing concerns over Musk’s political ambitions.
Democrats, meanwhile, seized on the rift. “Trump’s MAGA party is splitting at the seams,” said Democratic National Committee spokesperson Abhi Rahman.
With the billionaire’s new political venture drawing fire from both parties and investors, Musk’s leap into electoral politics threatens to reshape the conservative landscape – and potentially divide Trump’s Republican base.
