Trump calls Musk's formation of new party "ridiculous" and criticizes his own NASA pick

 

On Sunday,  President Donald Trump publicly criticized Elon Musk’s plan to launch a new political party in the United States, calling it “ridiculous”. Musk announced the formation of the "America Party" as a direct challenge to both Democrats and Republicans, citing his opposition to Trump’s recently signed $5 trillion tax-cut and spending bill, which Musk believes will dangerously increase the national debt.

Speaking before boarding Air Force One in New Jersey, Trump emphasized that the U.S. system was built around two major parties and that third parties have historically failed. “He can have fun with it, but I think it’s ridiculous,” Trump said.

Trump later posted on Truth Social, saying Musk had gone “off the rails” and accused him of becoming a “train wreck” over the past month.

Musk, who once heavily supported Trump’s reelection and frequently appeared at the White House, has had a falling out with the former president over policy differences. His new party aims to challenge Republican lawmakers who backed the “big, beautiful bill,” which he argues sacrifices fiscal responsibility.

Musk also criticized the government downsizing agency he previously led, questioning its purpose if the administration continues to grow federal spending.

The political rift highlights the breakdown of a once-close alliance and signals that Musk intends to become more active in national politics, not just as a donor but as a disruptor of the current party system.

His move was met with immediate backlash, including from financial firms like Azoria Partners, which postponed the release of a Tesla-linked ETF due to Musk’s political involvement, citing conflict with his duties as Tesla’s CEO.

President Trump also addressed a previous controversy involving NASA leadership, confirming on Sunday that he withdrew his own nominee, Jared Isaacman, due to concerns over his close relationship with Elon Musk.

Isaacman, a billionaire private astronaut and longtime associate of Musk, was originally tapped to lead NASA in December. However, Trump pulled the nomination in late May before a Senate confirmation vote. He admitted Sunday that it was “inappropriate” to appoint someone so deeply tied to Musk, whose SpaceX company maintains extensive contracts with NASA.

“I thought it inappropriate that a very close friend of Elon, who was in the space business, run NASA, when NASA is such a big part of Elon’s corporate life,” Trump wrote on Truth Social. He also criticized Isaacman’s past support for Democratic candidates, saying his top priority is to “protect the American Public.”

Trump’s remarks come amid growing fallout from Musk’s political activities. The billionaire CEO’s decision to form a new political party has already begun impacting his business interests.

Azoria Partners, a financial firm closely linked to Tesla through its planned Tesla Convexity ETF, announced it will delay launching the fund. The firm cited Musk’s political ambitions as a potential conflict with his duties as Tesla’s CEO.

Azoria’s CEO James Fishback issued a public call for Tesla’s board to urgently assess whether Musk’s political involvement is compatible with his corporate responsibilities. Fishback emphasized the need for clarity around Musk’s priorities and warned of potential investor risk.

This latest development adds a financial dimension to Musk’s growing political feud with Trump. What began as a disagreement over a spending bill has now evolved into a full-blown clash affecting government appointments, corporate leadership, and stock market strategy.

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