President Donald Trump criticized Elon Musk on Sunday, July 6, 2025, labeling Musk’s new political endeavor, the America Party, as “ridiculous” and stating Musk has gone “completely off the rails.” This public disagreement with the Tesla CEO arose after Musk introduced the America Party, positioning it as an alternative to what he calls the Republican-Democratic “uniparty” system.
Trump expressed his dissatisfaction with Musk, a former ally, in a lengthy post on Truth Social. He described Musk as “essentially becoming a TRAIN WRECK over the past five weeks,” attributing Musk’s actions to financial motivations. Trump specifically mentioned Musk’s opposition to the removal of electric vehicle incentives in the recently enacted spending bill.
Talking to reporters before boarding Air Force One on Sunday, Trump reiterated his opposition to third-party politics, stating that it would only introduce confusion into the traditional two-party system in the United States. He emphasized that third parties have historically not succeeded in American politics, primarily causing disruption.
Musk’s announcement of the America Party followed weeks of disagreement over Trump’s “Big Beautiful Bill,” which he signed into law on July 4. Musk had surveyed on his social media platform X, asking followers about their support for independence from the current two-party system. The poll received over 1.2 million responses, with a two-to-one majority favoring the new party.
The billionaire entrepreneur outlined a political strategy, aiming for two or three Senate seats and eight to ten House districts for the America Party. This strategy could make the party influential in contentious legislation, given Congress’s narrow margins. Musk clarified that while a presidential candidate might be considered in the future, the primary focus for the next year would be House and Senate races.
The relationship between Trump and Musk has deteriorated since the early days of Trump’s second term. Musk was a significant financial backer of Trump’s 2024 campaign and was appointed to lead the Department of Government Efficiency (DOGE), tasked with identifying federal spending cuts. However, conflicts over Trump’s comprehensive spending legislation strained their partnership.
Trump’s “Big Beautiful Bill” eliminated tax credits for electric vehicle purchases, impacting Musk’s Tesla business. Trump claimed in his Truth Social post that he had informed Musk during the campaign about plans to terminate the EV tax credit. According to Trump, Musk had no issues with this decision when endorsing him.
The spending legislation, projected to add $3.4 trillion to the federal deficit over a decade, includes increased funding for border security, defense, and energy production. Cuts to healthcare and food-support programs offset the spending. Musk has criticized the bill, arguing it could bankrupt the United States and strategically harm the country.
Treasury Secretary Scott Bessent commented on the matter during a CNN interview on Sunday, suggesting that the boards of Musk’s companies would prefer him to concentrate on business rather than politics. Bessent noted that while DOGE’s principles were well-received, Musk himself was less popular in polls. Musk responded, disputing the characterization of his popularity ratings.
Trump allies, including James Fishback, CEO of investment firm Invest Azoria, have also criticized Musk. Fishback announced the postponement of an initial public offering of his Azoria Tesla Convexity ETF, citing Musk’s political activities and their potential conflict with his responsibilities as Tesla CEO.
The formation of the America Party represents a challenge to the longstanding two-party system in American politics. However, breaking the Republican-Democratic dominance may be difficult due to structural advantages the established parties hold in the electoral system.
Musk’s announcement coincides with Trump’s ongoing tariff negotiations with international trading partners. The President has extended the pause on tariff implementation to August 1, as discussions about new trade arrangements continue.
