The ongoing feud between Elon Musk and Donald Trump continued on Sunday, when the US president again slammed the South African-born billionaire and his plan to introduce a third major political party.
Speaking to reporters ahead of his return to Washington from New Jersey, Trump dismissed Musk’s move as “ridiculous” and defended his own party’s track record.
“The Democrats have lost their way, but it’s always been a two-party system,” he said. “I think starting a third party just adds to confusion. It really seems to have been developed for two parties.”
Trump also wrote on his Truth Social platform on Sunday, stating, “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a train wreck over the past five weeks.”
Musk has announced the formation of a new political party following a public fallout with Trump over sweeping tax and spending reforms, saying he established the America Party on Saturday.
Musk, who was once a close ally of Trump during his leadership of the Department of Government Efficiency (DOGE), broke ranks with the president after the passage of a controversial tax and spending legislation Trump dubbed “Big Beautiful Bill”, signed into law on Friday.
Trump’s “Big Beautiful Bill” eliminated tax incentives for electric vehicles, which is bound to affect Musk, who owns the electric car-making company Tesla.
The legislation aims to increase funding for border security, defence and energy production, while drawing criticism for cutting healthcare and food assistance programmes.
As the legislation progressed through Congress, Musk warned he would create a new political entity if what he called an “insane spending bill” became law.
“When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,” Musk posted on X, the social media platform he owns. “Today, the America Party is formed to give you back your freedom.”
Was America Party actually registered?
Although third parties have historically struggled in the US, Musk’s significant financial injections into political favourites — including an estimated $250 million (€213 million) spent supporting Trump in the 2024 election — could influence the 2026 midterms, particularly if he devotes considerable resources to the endeavour.
However, the move may also pose risks for Musk, whose companies, including Tesla and SpaceX, benefit from substantial government contracts. Tesla shares saw declines amid renewed tensions between the duo.
It remains unclear whether Musk has formally registered the America Party. As of Sunday, the Federal Election Commission listed several entities using variations of “America Party,” “DOGE,” or “X,” although none appeared to be official.
Some filings featured dubious contact details, such as untraceable ProtonMail addresses or email addresses like “[email protected].”
Musk spent Sunday engaging with users on X, inviting feedback on the party and suggesting plans to play a role in the upcoming congressional elections. He previously warned he would target every lawmaker who supported Trump’s bill.
“The Republican Party has a clean sweep of the executive, legislative and judicial branches and still had the nerve to massively increase the size of government, expanding the national debt by a record $5 trillion,” Musk wrote.
Musk’s reversal is also notable as he had stated just weeks ago that he intended to reduce his political involvement.
Additional sources • AP