U.S. President Donald Trump harshly criticized Elon Musk on Sunday after the Tesla CEO launched a new political group, the “American Party,” calling the move “ridiculous” and warning it would bring “disruption and chaos.”
In a late-night Truth Social post, Trump wrote, “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,” referring to Musk’s growing political activity and break from traditional party lines, News.Az reports, citing CNBC.
Musk announced the formation of the “American Party” on Saturday via X (formerly Twitter), vowing to challenge both the Republican and Democratic parties and return “freedom” to Americans. “By a factor of 2 to 1, you want a new political party and you shall have it!” he declared.
The fallout between the two once-political allies came after Musk publicly criticized Trump’s tax and spending plans. The rift widened when Trump followed through on his campaign promise to end federal tax credits for electric vehicles—a policy Musk staunchly opposed.
Trump defended the move and claimed Musk had previously endorsed the decision. “He said he had no problems with that,” Trump wrote, referencing conversations during the 2024 campaign.
The reaction has also rattled parts of the financial world. James Fishback, CEO of Invest Azoria, postponed the launch of a Tesla-related ETF, citing concerns over Musk’s political involvement. “This creates a conflict with his full-time responsibilities as CEO of Tesla,” Fishback said.
The feud marks a dramatic turn in the Trump-Musk relationship, once highlighted by Musk’s appointment to lead a government cost-cutting agency known as DOGE (Department of Government Efficiency).
With the 2026 midterms approaching, Musk’s political gamble could reshape the U.S. political landscape, or backfire entirely.
