Trump Slams Musk Plan for Rival Party as Feud Deepens

Key Points

• Research suggests Donald Trump has criticized Elon Musk's plan to form a new political party, calling it "ridiculous" and stating third parties don't work in the U.S.

• The evidence leans toward this criticism being made on July 6, 2025, via Truth Social, amid a deepening feud, with Musk announcing the "America Party" after opposing Trump's tax-cut and spending bill.

• There is controversy, as this feud reflects political and business tensions, potentially impacting Tesla's performance and the 2026 midterm elections.

Background

Donald Trump, as U.S. President, and Elon Musk, CEO of Tesla, were once allies, with Musk heading the Department of Government Efficiency (DOGE). However, their relationship has deteriorated, particularly over policy disagreements.

Details

Trump slammed Musk's plan, saying, "Third parties have never worked, so he can have fun with it, but I think it’s ridiculous," and called Musk a "train wreck" for going "off the rails." Musk announced the "America Party" to challenge the U.S. "one-party system," criticizing Trump's spending bill for increasing national debt.

Implications

This feud could affect Tesla's business, with its stock down over 20% this year, and may influence Republican strategies for the 2026 midterms, given Musk's potential political impact.

Supporting URLs:

• Bloomberg: Trump Slams Musk Plan for Rival Party as Feud Deepens

• Al Jazeera: Trump slams ex-ally Musk's political party as 'ridiculous'

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Comprehensive Analysis of Trump’s Criticism of Musk’s Rival Party Plan and the Deepening Feud

This note provides a detailed examination of Donald Trump’s recent criticism of Elon Musk’s plan to form a new political party, announced on July 6, 2025, and the subsequent deepening of their feud. The analysis is informed by recent news articles, social media posts, and market data, ensuring a thorough understanding for professional colleagues, with a focus on the political and business implications.

Event Overview

On July 6, 2025, Donald Trump, via a post on Truth Social, criticized Elon Musk’s announcement of forming a new political party, the "America Party," calling it "ridiculous" and stating that third parties have never worked in the U.S. system. This development, reported across multiple sources including Bloomberg, Al Jazeera, Reuters, and BBC, aligns with the current date and time of 02:03 AM PDT on July 7, 2025, and reflects a significant escalation in their previously close relationship.

Background and Context

Donald Trump, as U.S. President, and Elon Musk, CEO of Tesla and SpaceX, were once allies, with Musk heading the Department of Government Efficiency (DOGE), a cost-cutting initiative under Trump’s administration. Their collaboration was evident in public appearances, such as Trump giving Musk a golden key to the White House during an Oval Office ceremony, as noted in the Al Jazeera article. However, their relationship deteriorated following Musk’s criticism of Trump’s "big beautiful" tax-cut and spending bill, which Musk denounced on X, stating, "When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy." Musk left DOGE in May 2025 to focus on corporate responsibilities, marking the beginning of their falling out.

Social media interactions on X, analyzed from posts between July 1 and July 6, 2025, show users engaging with the feud, with several mentioning Trump’s and Musk’s statements. For example, a post by @kuwaittimesnews on July 6, 2025, with 369 views, stated, "US President Donald Trump slammed his former ally Elon Musk's new 'America First' political party as 'ridiculous' on Sunday, after the tech billionaire who once backed the Republican said he wanted to challenge the United States' 'one-party system.'" Another post by @realTuckFrumper on July 1, 2025, with 467 views, noted, "Musk Renews Promise to Start New Rival Political Party—With Patriotic Name—as Trump Debates Deporting Him," indicating early signs of tension.

Details of Trump’s Criticism

Trump’s criticism was detailed in multiple news articles. Bloomberg reported, "Third parties have never worked, so he can have fun with it, but I think it’s ridiculous," with Trump also stating the U.S. has "always been a two-party system." Al Jazeera provided additional context, quoting Trump’s Truth Social post: "I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks... The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats." This statement, made on July 6, 2025, reflects Trump’s view that Musk’s political move is disruptive and unnecessary, potentially harming Republican unity.

Detail	Information
Trump’s Statement	"Third parties have never worked, so he can have fun with it, but I think it’s ridiculous." Called Musk a "train wreck" for going "off the rails."
Platform	Posted on Truth Social on July 6, 2025
Additional Comment	Third parties create "DISRUPTION & CHAOS," enough with Radical Left Democrats
Context	Response to Musk’s announcement of the "America Party"

This table summarizes Trump’s key statements, highlighting the tone and platform used.

Musk’s Action and Motivation

Musk announced the founding of the "America Party" on Saturday, July 5, 2025, as reported by Al Jazeera and BBC, aiming to challenge the U.S. "one-party system." His motivation stems from opposing Trump’s domestic spending plan, which he believes would explode U.S. debt. Musk’s post on X, as cited in the Al Jazeera article, stated, "When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy," indicating his frustration with both major parties. However, no official paperwork has been filed for the party, and details remain sparse, as noted in the Bloomberg article.

Impact on Tesla and Business

Musk’s political involvement has coincided with business challenges at Tesla. Bloomberg reported that Tesla’s stock has lost more than 20% this year, slumping as much as 7.6% in premarket trading on Monday, July 7, 2025. Global sales tumbled 13% in Q2, putting the company on course for a second consecutive annual decline. Analyst Daniel Ives from Wedbush, in a note dated July 6, 2025, commented, "Musk’s political focus is the opposite of what Tesla investors want during this crucial period," suggesting that his political gamble may draw Tesla board involvement. Tesla is also facing headwinds globally, with aggressive competition in China from BYD Co. and Xiaomi Corp., though shipments from its Shanghai factory rose 0.8% recently, the first time in eight months, as per Bloomberg.

Tesla Business Metric	Value
Stock Decline YTD	Over 20%
Pre-market Trading Drop (July 7, 2025)	7.6%
Q2 Global Sales Decline	13%
Shanghai Factory Shipments Growth (Recent)	0.8%

This table summarizes Tesla’s recent business performance, illustrating the challenges amid Musk’s political activities.

Political and Economic Implications

The feud has potential political implications, particularly for the 2026 midterm elections. Al Jazeera noted that Musk’s party could cause headaches for Republicans, potentially splitting votes and affecting GOP strategies. Treasury Secretary Scott Bessent, as quoted in the Al Jazeera article, suggested Musk should focus on running his companies, stating, "I believe that the boards of directors at his various companies wanted him to come back and run those companies, which he is better at than anyone." This reflects broader concerns about Musk’s distraction from business responsibilities, potentially impacting investor confidence and market stability.

Market and Social Context

The feud reflects broader tensions between political and business spheres, with Musk’s move seen as a challenge to the two-party system, while Trump aims to maintain Republican unity. Social media reactions, as seen in X posts, indicate public interest and polarization, with some viewing Musk’s party as a necessary challenge and others aligning with Trump’s criticism. The timing, during a period of economic uncertainty and trade policy shifts, underscores the potential for further market volatility, particularly for Tesla shareholders.

Conclusion

In summary, research suggests Donald Trump has criticized Elon Musk’s plan to form the "America Party," calling it "ridiculous" and stating third parties don’t work, amid a deepening feud announced on July 6, 2025. The evidence leans toward this criticism being made via Truth Social, following Musk’s opposition to Trump’s spending bill. There is controversy, as this feud reflects political and business tensions, potentially impacting Tesla’s performance and the 2026 midterm elections, with implications for market stability and investor sentiment warranting close monitoring.

Supporting URLs:

• Bloomberg: Trump Slams Musk Plan for Rival Party as Feud Deepens

• Al Jazeera: Trump slams ex-ally Musk's political party as 'ridiculous'

• Reuters: Trump calls Musk's formation of new party "ridiculous" and criticizes ...

• BBC: Trump calls Musk's new political party 'ridiculous'

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