Washington, July 8: U.S. President Donald Trump sharply criticized Tesla CEO Elon Musk on Sunday after the tech billionaire launched a new political party, calling the move “ridiculous” and saying Musk had gone “completely off the rails.”
In a late-night post on Truth Social, Trump wrote, “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 and chaos.”
Musk announced the creation of the “American Party” on Saturday in a post on X, stating the new political outfit would provide an alternative to the Republican and Democratic parties. “By a factor of 2 to 1, you want a new political party and you shall have it,” Musk said. “Today, the American Party is formed to give you back your freedom.”
The move marks a dramatic escalation in the rift between Trump and Musk, who had once shared a mutually beneficial relationship. Musk donated significant funds to support Trump’s 2024 campaign and was later appointed to head the Department of Government Efficiency (DOGE) — an office created by Trump’s administration that aggressively slashed the federal workforce and rolled back oversight of multiple agencies, including those regulating Musk’s businesses.
Tensions grew in recent weeks over Trump’s tax and spending legislation, which was signed into law on July 4 and included the elimination of tax credits for electric vehicle (EV) buyers. Trump said Musk was fully aware of his intentions during the campaign.
“When Elon gave me his total and unquestioned Endorsement, I asked him whether or not he knew that I was going to terminate the EV Mandate,” Trump wrote. “He said he had no problems with that.”
The president also criticized Musk’s previous push for what he called an “Electric Vehicle Mandate”, claiming it would have “forced everyone to buy an electric car in a short period of time.”
Musk’s political move triggered concern among investors. James Fishback, CEO of investment firm Invest Azoria and a Trump ally, announced he was postponing the IPO of the Azoria Tesla Convexity ETF in response to Musk’s political activities.
“This creates a conflict with his full-time responsibilities as CEO of Tesla,” Fishback said, urging the company’s board to intervene. “It diverts his focus and energy away from Tesla’s employees and shareholders.” Musk has not yet responded to Trump’s comments or investor criticism.
