^{President Donald Trump, left, speaks with reporters | AP}

Former President Donald Trump has publicly condemned Elon Musk’s decision to form a new political party, calling the Tesla CEO “completely off the rails” and accusing him of creating chaos during a critical moment in U.S. politics and business. The clash marks a stunning reversal in the once-close relationship between the two high-profile figures.

In a post on Truth Social late Sunday, Trump stated, “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’s “American Party” Shakes Political Landscape

On Saturday, Musk made the long-speculated move official, announcing on X (formerly Twitter) the formation of the “American Party.” According to Musk, the new party is designed to challenge both the Republican and Democratic establishments. He claimed in his post that Americans are “demanding a new political option by a factor of 2 to 1,” and declared, “Today, the America Party is formed to give you back your freedom.”

Musk’s political shift follows weeks of growing tension with Trump, particularly over federal tax and spending policies. Musk has been vocal in his criticism of Trump’s July 4 tax and budget bill, which included the elimination of electric vehicle (EV) tax credits—a move Musk argues will slow clean energy progress and undercut American innovation.

From Allies to Adversaries: The Musk-Trump Fallout

The falling out between Trump and Musk is all the more surprising given their recent political and financial alignment. Musk had previously contributed millions to Trump’s re-election efforts and was appointed by Trump to lead the Department of Government Efficiency (DOGE), tasked with identifying ways to reduce federal spending.

However, disagreements over fiscal policy and environmental regulation appear to have shattered the alliance. “I think it’s ridiculous to start a third party. We have a tremendous success with the Republican Party,” Trump told Reuters on Sunday. “The Democrats have lost their way, but it’s always been a two-party system. Starting a third party just adds to confusion.”

Trump also criticized Musk’s proposed EV policies, claiming the Tesla founder was attempting to force Americans into electric vehicles through a regulatory “mandate.” Trump said he warned Musk during his campaign that such mandates would be scrapped, and that Musk had not objected at the time. “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... He said he had no problems with that,” Trump stated.

Wall Street Reacts: Tesla ETF Faces Delay

Musk’s political ambitions are already having ripple effects in the financial world. James Fishback, CEO of investment firm Invest Azoria, said on Sunday that he has delayed the public launch of the firm’s Azoria Tesla Convexity ETF “in direct response” to Musk’s formation of the American Party.

“This creates a conflict with his full-time responsibilities as CEO of Tesla,” Fishback wrote in a post on X. “It diverts his focus and energy away from Tesla’s employees and shareholders.”

Investor concerns have been rising for months over Musk’s growing list of ventures—including his roles at SpaceX, X, Neuralink, and now, political organizing. The Tesla board has so far remained silent on the issue, but analysts are beginning to question whether Musk’s political distractions could harm the automaker’s long-term growth and valuation.

The Broader Implications: Third-Party Disruption or Distraction?

Musk’s entry into third-party politics could prove to be a disruptive force in upcoming elections. But for investors, shareholders, and political operatives alike, the question remains: is this a calculated pivot toward reform, or a misstep that could destabilize both markets and political alliances?

Trump’s harsh words reflect the high stakes involved—not just for the GOP, but also for Tesla, its investors, and the broader AI and EV industries. As Musk doubles down on his “America Party,” he may be launching one of his most unpredictable ventures yet—one that merges Silicon Valley influence with Washington’s volatile political terrain.