WASHINGTON: President Donald Trump dismissed Elon Musk’s plans to establish a new political party as “absurd”, criticizing the tech mogul and raising concerns about a potential conflict of interest involving Musk’s space ventures. Trump’s comments came shortly after Musk announced the formation of the “America Party” in response to Trump’s recent tax and spending legislation, which Musk criticized for threatening the country’s financial stability.
As Trump prepared to depart Morristown, New Jersey, aboard Air Force One after visiting his nearby golf club, he was asked about Musk’s political ambitions. He expressed skepticism about the viability of a third party, emphasizing the strength of the Republican Party and the longstanding two-party system in the U.S.
“I think starting a third party is unnecessary and just leads to more confusion,” Trump told journalists. “Our success has been with the two main parties. Third parties have historically failed, so I don’t see the point.”Following his initial comments, Trump took to his Truth Social platform to further criticize Musk, writing, “It’s sad to see Elon Musk go completely off the rails — he’s become a total train wreck over the past month.”
Musk’s announcement of the “America Party” was a direct response to Trump’s recent tax and spending bill, which Musk claimed would bankrupt the nation. Musk also questioned the purpose of Dogecoin (@DOGE) on X, Twitter’s rebranded platform, asking, “What was the point of @DOGE if it’s just going to add $5 trillion to the debt?” Musk has been vocal about concerns that the legislation, which added significantly to the federal deficit, would harm the economy.
Musk indicated that his new political effort aims to challenge Republican lawmakers in Congress who supported the bill, which he called the “big, beautiful bill.” Notably, Musk had previously invested heavily in Trump’s 2024 re-election campaign and appeared frequently alongside the former president in White House events and other venues. Their relationship soured after Musk criticized the spending measure, which Trump signed into law last week, and Musk attempted to mend fences unsuccessfully.
Trump has claimed that Musk’s dissatisfaction stems from the bill’s removal of green-energy tax credits for Tesla’s electric vehicles. In response, Trump has threatened to revoke billions in government contracts and subsidies awarded to Tesla and SpaceX, citing Musk’s criticism.Regarding space policy, Trump criticized the appointment of Jared Isaacman as NASA administrator, calling it “inappropriate” given Isaacman’s close ties to Musk’s space business. Trump had initially nominated Isaacman, a billionaire private astronaut, to lead NASA in December but withdrew the nomination in May without explanation. Trump also expressed disapproval of Isaacman’s past political support for Democrats, stating it was “inappropriate” for someone with such close links to Musk’s interests to oversee NASA, which Trump considers a crucial national agency.
Meanwhile, Azoria Partners announced they would delay the launch of their Tesla-focused ETF, the Azoria Tesla Convexity fund, citing concerns that Musk’s new political activities could conflict with his role as Tesla’s CEO. The CEO of Azoria, James Fishback, publicly called on Musk to clarify his political intentions and assess whether they align with his responsibilities at Tesla, emphasizing the importance of maintaining full commitment to his corporate duties.
