Donald Trump Declares Elon Musk “Off the Rails” After Launching New American Political Party
- Jul 7, 2025
- 3 min read
7 July 2025
In a dramatic turn of events that marks the end of their once-close alliance, former President Donald Trump has publicly condemned Elon Musk after the tech billionaire with over $60 billion in assets and a history of billionaire-backed political influence announced the founding of the “America Party” on July 5. The creation of this new political entity signals a deliberate rupture from Trump and the Republican fold, reigniting debates around third-party viability and the changing political landscape in the United States.
Trump’s response was swift and scathing. Speaking to reporters aboard Air Force One on July 6 and echoing sentiments on Truth Social, he branded Musk’s party idea as “ridiculous,” “off the rails,” and a “train wreck,” warning US voters that historical precedent proves third-party campaigns in America only bring chaos, never victory. Trump further insinuated that Musk’s deep involvement with Tesla and other government-subsidized technologies might be jeopardized by this political move.
Behind Musk’s headline-grabbing announcement is a detailed strategy and timing shaped by fiscal concerns. This split with Trump comes after Musk’s vocal rejection of the recent “One Big Beautiful Bill,” which Trump passed into law in June. Musk who previously served in Trump’s informal “Department of Government Efficiency” scored heavy criticism for the bill, saying it added trillions to the national debt and scrapped key electric-vehicle incentives. In a July 4 poll on his platform, X, more than 60 percent of participants responded in favor of forming a new party, leading Musk to formalize the America Party classifying it as fiscally conservative and tech-savvy, with goals of debt reduction, deregulation, military modernization, and boosting birth rates.
Trump directly tied Musk’s announcement to dissatisfaction with the new spending law, declaring that Musk was abandoning the GOP because Trump had refused to rollback specific benefits for Tesla, hinting that he might “reevaluate” those subsidies . This clash exposes a deep divide: Musk has gone from his position as the single largest political donor in 2024 to a self-appointed disruptor of the very system he once supported.
But Trump’s critique was not just personal, it also hit financial nerves. Following the America Party announcement, Tesla shares plunged 7% in early trading, aggravating earlier losses tied to Musk’s political activism. Analysts from Wedbush and others now warn that Musk’s new political pursuits are distracting and undermining his leadership at Tesla, demanding that the board step in to restore focus.
This public feud is more than a clash of personalities, it symbolizes a shifting era in American politics, shaped by ultra-wealthy influencers who straddle business, policy, and power. Former allies turned adversaries, Trump and Musk now embody opposing visions for their shared future. Trump aims to preserve the Republican structure and dismisses third-party threats; Musk seeks to dismantle what he calls the “uni-party” and target key House and Senate seats with tactical investments .
Yet building a viable third party in the U.S. remains a colossal challenge. Ballot access fights, campaign infrastructure demands, and deep voter loyalty to the two-party system pose severe hurdles. Trump is quick to point this out while Musk asserts that his enormous fundraising power and grassroots base will change the calculus .
Adding intensity, Trump overnight revoked nominations of several Musk allies, including for NASA positions. The former president seems determined to punish perceived betrayal even speculating about taking Musk’s EV tax credits and subsidies off the table.
What lies ahead is a perilous dance of money, media, and public sentiment. Can Musk translate X platform enthusiasm into real-world votes? Will Trump’s attacks diminish the venture or rally MAGA supporters behind him? And crucially, can a billionaire sway the vote away from entrenched systems?
As markets track Tesla’s next moves and former allies become political sparring partners, the America Party announcement has reached beyond headline news. It has set in motion a potential realignment where old alliances fail, and new strategies test the limits of both influence and ideology.
In the weeks ahead, every tweet, press release, and stock market shift will be scrutinized. Because if Musk truly means it, his America Party could either reset or collapse the existing order. For Trump, it may be a distraction or a genuine threat. But for American democracy, the clash between these two titans may signal a turning point in how policy, power, and personality intersect on the national stage.
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