A dramatic clash between two titans of American influence has ignited headlines, as President Donald Trump and tech mogul Elon Musk trade barbs over a bold new political endeavor. The fallout, rooted in policy disagreements, has sent shockwaves through political and financial spheres, leaving conservatives questioning Musk’s next move.

Summary

• President Trump called Elon Musk’s new “America Party” “ridiculous” and doomed to fail.
• Musk launched the party to challenge the U.S. two-party system after opposing Trump’s budget bill.
• Tensions stem from Musk’s exit from the Department of Government Efficiency and disputes over EV subsidies.
• Tesla stock plummeted, losing over $150 billion in market value amid Musk’s political pivot.
• Conservative figures and Tesla shareholders express concern over Musk’s actions.

Trump’s Fiery Rebuke

President Donald Trump didn’t hold back when addressing Elon Musk’s announcement of the “America Party,” a third-party initiative aimed at disrupting the U.S. political landscape. Speaking to reporters before boarding Air Force One, Trump declared, “I think it’s ridiculous to start a third party. We have great success with the Republican Party. The Democrats have lost their way, but it’s always been a two-party system.” He added, “Third parties have never worked, so he can have fun with it, but I think it’s ridiculous.” 

On Truth Social, Trump doubled down, lamenting, “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.”

Musk’s Defiant Move

Musk’s decision to form the America Party came after a public feud with Trump over the president’s “big, beautiful bill,” signed into law on July 4, 2025. The legislation, projected to add $3.4 trillion to the national debt, eliminated electric vehicle (EV) subsidies, a sore point for Musk’s Tesla empire. 

“What the heck was the point of @DOGE if he’s just going to increase the debt by $5 trillion??” Musk posted on X, quoting Dune to jab at Trump: “Fear is the mind-killer.” 

Musk’s party aims to challenge Republicans in the 2026 midterms, targeting those who backed the bill.

Tesla Stock Takes a Hit

Musk’s political gambit has rattled investors. Tesla stock plunged 14–16%, wiping out over $150 billion in market value, as Trump threatened to reconsider government contracts with Musk’s companies. 

Shareholders voiced frustration on X, with one stating, “Elon’s erratic behavior is tanking $TSLA. Investors want focus, not politics.” 

Another added, “Stockholders are bailing. #BoycottTesla is gaining traction globally.”

Conservative Backlash

Trump loyalists, including Roger Stone and Steve Bannon, criticized Musk’s move as “vote-splitting” and questioned his foreign-born status. 

Treasury Secretary Scott Bessent advised Musk to “stick to business” on CNN’s State of the Union. As the feud escalates, conservatives rally behind Trump’s vision, wary of Musk’s disruptive ambitions.