Donald Trump just took a wrecking ball to Elon Musk’s new third-party dream, calling it “ridiculous” and warning of serious fallout. It’s a high-stakes feud between two of the world’s most powerful and unpredictable figures. Here’s what’s really behind the blow-up—and why it could reshape U.S. politics.
Trump Slams Musk’s New Political Party as ‘Ridiculous’
| Takeaway | Stat/Detail |
|---|---|
| Trump lashes out | Called Musk’s America Party “ridiculous” and a “train wreck” |
| Musk pivots | Launches “America Party” aimed at centrists |
| Threat of fallout | Trump hints at pulling federal subsidies and canceling SpaceX contracts |
| Investor anxiety | Tesla shares dipped post-announcement |
This isn’t just a beef between two rich guys. It’s a clash of ideologies, egos, and emerging power centers. If Musk’s America Party takes root, it could upend the status quo. If it fizzles, Trump’s dominance could grow stronger. Either way, the 2026 election cycle just got way more interesting.
From Allies to Adversaries
Just a year ago, Trump and Musk were aligned. Musk had thrown major financial support behind Trump’s 2024 bid—reportedly backing the campaign with $290 million via America PAC. He even took a short-lived advisory role in Trump’s federal reform effort dubbed the Department of Government Efficiency (DOGE).
But by June 2025, their relationship soured. After Trump pushed a $5 trillion tax-and-spending plan, Musk lashed out on X (formerly Twitter), calling it a “disgusting abomination.” That tweet lit the fuse.
On July 5, Musk went nuclear: launching the America Party, pledging to fund primary challengers, and calling out Trump-aligned Republicans who backed the bill. He framed the new party as a haven for “the 80 percent in the middle.”
Trump’s Full-Frontal Rebuttal
In a July 6 interview, he dismissed Musk’s third-party effort as “ridiculous,” called Musk “off the rails,” and said the plan would never gain traction. He went further—threatening to pull federal contracts from Musk’s companies and even floated the idea of deporting the dual U.S.–South African citizen, though legal experts scoffed at the plausibility.
“Elon’s America Party is a train wreck waiting to happen,” Trump said. “He’s trying to divide the country with a vanity project.” It wasn’t just words. By July 7, Tesla stock had dipped as investors fretted over the potential political blowback, especially with SpaceX’s significant reliance on federal contracts.
Musk’s Game Plan
Musk, for his part, appears unfazed. He’s tapping into deep financial reserves and his massive online reach to kick-start a movement. While he hasn’t filed the official paperwork to make the America Party a formal political entity, insiders say legal teams are already laying the groundwork for 2026 midterm runs.
He’s reportedly eyeing moderate districts where GOP incumbents supported Trump’s “Big Beautiful Bill,” hoping to install independent candidates who better reflect “fiscal sanity and innovation-forward policy.”
Can a Third-Party Work?
It’s a fair question. U.S. political history isn’t kind to third-party efforts. Ballot access is a legal labyrinth, and even well-funded efforts like Ross Perot’s Reform Party or Andrew Yang’s Forward Party struggled to gain traction.
Still, experts say Musk brings two unique assets: cultural cachet and unfiltered access to tens of millions through X. That kind of exposure is priceless—and disruptive. “It’s not about winning overnight,” said Dr. Lena Hu of Georgetown’s Political Strategy Lab. “It’s about shifting the Overton window and applying pressure on the GOP.”
What This Means for Voters—and the Markets
If Musk follows through, the America Party could siphon votes from moderate Republicans and independents, reshaping close races. Trump’s team clearly sees the threat, hence the swift and fierce backlash.
The financial stakes are huge, too. Tesla, SpaceX, and even The Boring Company rely on a mix of federal contracts and favorable policy environments. A prolonged political war could invite scrutiny from regulators or cuts to government deals.
As a journalist who’s covered Musk since his PayPal days, I’ve never seen him more politically activated. He’s not just tweeting. He’s organizing, funding, and potentially fielding candidates. Whether or not this movement takes off, the ripple effects are already being felt.
What’s Next?
Expect more heat this summer. Musk has teased a national town hall tour. Trump’s PAC is ramping up digital ads attacking Musk and painting him as a tech elitist. Both sides are courting donors, and the press is watching every move.
