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Trump Criticizes Musk Over Plans to Establish a New Political Party in the U.S.: A Stark Warning

Tuesday, July 8, 2025 by Bella Nunez

Trump Criticizes Musk Over Plans to Establish a New Political Party in the U.S.: A Stark Warning
- Image of © YouTube/Screenshot-FOX News

Donald Trump has launched a vehement critique against Elon Musk following the entrepreneur's announcement to establish a new political party in the U.S., named the America Party, and issued him a stern warning. The former president labeled Musk as a "disaster" and a "derailed train," showing deep displeasure towards the tech mogul's recent political shift.

"I'm saddened to see Elon Musk spiraling out of control, essentially becoming a DISASTER over the past five weeks," Trump began in a lengthy post on Truth Social, sharing his thoughts on Musk's recent moves. "He even wants to start a Third Political Party, despite them never being successful in the U.S. The system simply isn't geared for them. Third parties only bring about TOTAL DISRUPTION and CHAOS, and we've got enough of that with the Radical Left Democrats who have lost their confidence and sanity!"

The critique came shortly after Musk revealed on X his plan to push for the creation of the America Party, which he described as an alternative challenging the "uniparty of Republicans and Democrats" that he claims has ruined the country with waste and corruption.

To Trump, however, this idea is "ridiculous" and "doomed to fail," which he reiterated stepping off Air Force One on the same Sunday. "Creating a third party is absurd. We have great success with the Republican Party; Democrats have lost their way, but it has always been a two-party system. Third parties have never worked. He can have fun with it, but it's ridiculous," Trump stated.

Personal, Political, and Economic Rupture

For months, Musk and Trump exchanged praises, attended events, and shared mutual goals. Musk even donated $260 million to the Republican campaign and led the controversial Department of Government Efficiency (DOGE), promoting massive layoffs of public employees. However, this harmony was shattered this week after Congress approved the One Big Beautiful Bill (BBB), a massive fiscal law backed by Trump that cuts incentives for electric vehicles, a key business line for Tesla, and reduces taxes for the wealthiest, increasing the deficit by over $3.3 trillion in a decade.

Musk strongly opposed the bill, calling it an "abomination." "I've campaigned on this for two years, and when Elon gave his full and unquestionable support, I asked if he knew it would eliminate the EV mandate — it was in all my speeches and every conversation I had. He said he had no problem with it — I was very surprised!" Trump now defends himself.

"A Derailed Train": Trump Continues His Attack

Beyond political differences, Trump dedicated a significant portion of his message to questioning Musk's judgment and stability. The criticism included what Trump sees as conflicts of interest in Musk's circle, particularly his attempt to appoint a personal friend as NASA director.

"Elon asked for one of his close friends to head NASA, and although I thought his friend was very good, I was surprised to learn he was a staunch Democrat who had never contributed to a Republican before. It also seemed inappropriate for a close friend of Elon, involved in the space business, to lead NASA, when NASA is such a big part of Elon's corporate life," Trump said.

According to Trump, what's at stake is not just the control of his party or a market, but the system itself. "My primary responsibility is to protect the American people!" he concluded his latest tirade against the world's wealthiest man.

Tesla's Tumultuous Market Reaction

The clash of titans quickly impacted the markets. Tesla's shares dropped over 7% on Monday following Trump's statements. Investors and analysts are concerned about Musk's return to politics, which could divert his focus from business at a critical time for the company.

"Investors are growing tired of the distraction at a time when the company needs Musk's attention more," warned Jed Dorsheimer, an analyst at William Blair. Tesla is experiencing a rough patch: declining sales for the second consecutive quarter, increasing competition from Chinese manufacturers like BYD, and protests over Musk's decisions during his government tenure.

Experts suggest his new political venture could further damage his corporate image and directly affect relations with the federal government on issues like environmental regulation, subsidies, AI, and space exploration.

Does the America Party Have a Future?

As of now, the America Party hasn't been formally registered with the Federal Election Commission, but Musk has hinted at possibly financing strategic candidates to influence Congress. His aim would be to disrupt the traditional balance between Republicans and Democrats by supporting independent figures aligned with his vision.

What began as a symbiotic collaboration between the world's richest man and America's most controversial president has turned into an open war of statements, accusations, and collateral damage. And while it's too early to gauge the full impact of this conflict, it seems neither Trump nor Musk is willing to back down.

Key Questions on the America Party and Political Dynamics

What is the America Party proposed by Elon Musk?

The America Party is a new political initiative proposed by Elon Musk, aiming to challenge the traditional two-party system in the U.S. by providing an alternative to the Republican and Democratic parties.

Why is Donald Trump opposed to a third political party?

Donald Trump opposes the formation of a third political party, arguing that such parties have historically been unsuccessful in the U.S. and only serve to create disruption and chaos in the political landscape.

How did the conflict between Trump and Musk affect Tesla?

The conflict led to a significant drop in Tesla's stock value, with shares falling over 7% as investors worried that Musk's political involvement might distract him from focusing on business at a crucial time for the company.

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