Former allies, U.S. President Donald Trump and tech mogul Elon Musk, have entered a fierce political clash after Musk announced the formation of a new political party, the “American Party.” Trump, visibly enraged, lashed out on Truth Social late Sunday, declaring Musk had gone “completely off the rails.”
In a scathing post, Trump said, “The one thing Third Parties are good for is the creation of complete and total disruption and chaos.” He added, “I am saddened to watch Elon Musk become a TRAIN WRECK over the past five weeks.”
The dramatic fallout follows Musk’s weekend post on X, where he declared the formation of a new party aimed at breaking the two-party deadlock in Washington. “By a factor of 2 to 1, you want a new political party and you shall have it!” Musk wrote, adding that the American Party’s mission is to “give you back your freedom.”
Sparks Fly Over Spending Bill and EV Policy
Behind the scenes, the feud appears rooted in sharp policy disagreements. Most notably, Trump’s July 4 tax and spending bill eliminated federal tax credits for electric vehicles—a direct blow to Tesla and its consumers. Trump confirmed Sunday that he had always planned to kill the EV credit and had warned Musk in advance.
“When Elon gave me his total and unquestioned Endorsement, I asked him whether or not he knew that I was going to terminate the EV Mandate… He said he had no problems with that,” Trump posted.
But Musk’s recent criticism of the bill, calling it “fiscally suicidal,” reportedly fractured the once strong political bromance. Trump had previously appointed Musk as head of the Department of Government Efficiency (DOGE), where Musk was tasked with finding ways to cut wasteful federal spending.
Trump now argues Musk’s third-party stunt is “ridiculous,” insisting that America’s two-party system—despite its flaws—is fundamental to political stability. “We have a tremendous success with the Republican Party,” Trump told reporters. “Starting a third party just adds confusion.”
Backlash Builds from Trump’s Inner Circle
Trump’s inner circle quickly echoed the president’s discontent. James Fishback, CEO of Invest Azoria, took direct action, halting an IPO tied to Tesla. He urged Tesla’s board to “rein in” Musk, warning that the new political venture distracts from his corporate responsibilities.
“This creates a conflict with his full-time responsibilities as CEO of Tesla,” Fishback wrote on X. “It diverts his focus and energy away from Tesla’s employees and shareholders.”
As the clash between the former allies intensifies, questions swirl about the long-term fallout. Can Musk juggle political ambition with his business empire? And will Trump’s aggressive rebuke end Musk’s short-lived political momentum—or fuel it?
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