U.S. President Donald Trump labelled Elon Musk’s newly announced America Party “ridiculous,” intensifying their public feud after Musk criticised Trump’s $3.3 trillion tax and spending bill.
Trump, speaking to reporters in Morristown, New Jersey, dismissed Musk’s America Party by stating, “Third parties have never worked… it’s always been a two-party system.” Musk announced the formation of the party on X, claiming that 80% of 5.6 million poll respondents supported it. He aims to secure 2 to 3 Senate seats and 8 to 10 House districts in the 2026 elections. As of July 6, no filing had been recorded with the Federal Election Commission, indicating that the party is still in its conceptual stages.
Elon-Trump Feud’s Roots
The conflict arose from Elon Musk’s opposition to Donald Trump’s “Big, Beautiful Bill,” which aimed to eliminate $7,500 in electric vehicle (EV) subsidies for each Tesla vehicle. This dispute poses a threat to Musk’s $405 billion empire. Trump has threatened to cut $11 billion in subsidies for both Tesla and SpaceX, which resulted in a 14% drop in Tesla’s stock on July 3.
🇺🇸🇺🇸🇺🇸 AMERICA 🇺🇸🇺🇸🇺🇸
— Elon Musk (@elonmusk) July 5, 2025Investors, such as Gary Black, sold their shares, pointing to risks affecting Tesla’s robotaxi program. In response to the situation, Musk downplayed concerns about subsidies, instead emphasising the bill’s potential to increase the national debt by $3 trillion.
Read: Elon Musk Announces America Party Formation Amid Trump Feud
Musk’s $280 million support for Trump’s 2024 campaign, channelled through America PAC, contrasts sharply with his recent threat to fund lawmakers who oppose certain bills. Trump’s allies, including J.D. Vance, have labelled Musk’s criticisms as “nuclear.” The Republican Party, which currently holds narrow congressional majorities, is concerned that Musk’s actions could disrupt the 2026 midterm elections.
