The feud between President Donald Trump and billionaire Elon Musk is dramatically escalating as Musk launches a new political party, the America Party, aiming to upend what he calls a corrupt two-party system.

President Trump fired back on Truth Social on Sunday evening, calling Musk a “train wreck” and dismissing his third-party bid as a recipe for chaos.

Elon Musk, the world’s richest man, has launched a new political party, the America Party, claiming the two-party system is broken and corrupt.

The public showdown between the tech titan and the commander in chief comes on the heels of a contentious $3.3 trillion spending bill signed into law, exposing deep rifts within the Republican Party and raising questions about the future of American politics.

Musk announced the formation of the America Party on his social media platform X on Saturday, following a July 4 poll where 65.4% of 1.2 million respondents supported creating a new party to challenge the "two-party (some would say uniparty) system."

The announcement came one day after President Trump signed the "Big, Beautiful Bill," a $3.3 trillion legislative package into law, which included tax cuts, infrastructure spending, and stimulus measures.

The bill, criticized by fiscal conservatives for adding $3.3 to $4.5 billion to the national debt, passed narrowly: 51-50 in the Senate, with Vice President JD Vance casting the tie-breaking vote, and 218-214 in the House.

GOP Sens. Susan Collins, R - Maine, Rand Paul, R -KY, and Thom Tillis, R - NC, and Reps. Thomas Massie, R-KY, and Brian Fitzpatrick, R-PA, voted against it.

Musk filed a Statement of Organization with the Federal Election Commission on Sunday, formalizing the America Party with its headquarters at SpaceX’s address in Hawthorne, California.

Tesla CFO Vaibhav Taneja, an Indian national, was named treasurer.

Musk’s strategy is to target two to three Senate seats and eight to ten House districts to create a swing bloc capable of influencing contentious legislation in a Congress with razor-thin Republican majorities (53-47 in the Senate, 220-212 in the House, with three vacant seats).

The former DOGE chief accused both parties of bankrupting the nation with reckless spending and declared the America Party a solution to restore freedom.

"By a factor of 2 to 1, you want a new political party and you shall have it. When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy," Musk wrote on X. "Today, the America Party is formed to give you back your freedom.”

He outlined a targeted approach to disrupt Congress, focusing on a small number of seats to wield outsized influence.

"One way to execute on this would be to laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts. Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people," Musk, X continued.

Musk’s announcement follows weeks of escalating tensions with Trump, particularly over the spending bill, which Musk called a product of the "PORKY PIG PARTY."

He threatened to fund primary challenges against Republicans who supported it, singling out Freedom Caucus members Reps. Andy Harris of Maryland and Chip Roy of Texas.

Musk didn’t stop there, vowing to hold accountable lawmakers who backed the bill despite campaigning on fiscal restraint.

"They will lose their primary next year if it’s the last thing I do on this Earth," he warned.

On Sunday, July 6, 2025, at approximately 6:33 PM EDT, President Trump responded on Truth Social, calling Musk’s America Party "ridiculous" and a source of "disruption and chaos."

He defended the spending bill, emphasizing its elimination of the electric vehicle (EV) mandate, which he claimed Musk initially supported despite its impact on Tesla.

Trump lambasted Musk’s third-party bid and suggested personal motivations, including Musk’s failed push for a friend to lead NASA:

"I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks. He even wants to start a Third Political Party despite the fact that they have never succeeded in the United States – The System sees not designed for them. The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds! Republicans, on the other hand, are a smooth running ‘machine,’ that just passed the biggest Bill of its kind in the History of our Country. It is a Great Bill but, unfortunately for Elon, it eliminates the ridiculous Electric Vehicle (EV) Mandate, which would have forced everyone to buy an Electric Car in a short period of time. I have been strongly opposed to that from the very beginning. People are now allowed to buy whatever they want – Gasoline Powered, Hybrids (which are doing very well), or New Technologies as they come about – No more EV Mandate. I have campaigned on this for two years and, quite honestly, when Elon gave me hiss total and unquestioned Endorsement, I asked him whether or not eh knew that I was going to terminate the EV Mandate – it was in every speech I made, and in every conversation I had. He said he had no problems with that – I was very surprised! Additionally, Elon asked that one of his close friends run NASA and, while I though his friend was very good, I was surprised to learn that he was a blue blooded Democrat, who had never contributed to a Republican before. Elon probably was, also I also 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. My Number One charge is to protect the American Public!"

The feud intensified in June when Trump labeled Musk a "big-time drug addict" and threatened to cut federal contracts for Tesla and SpaceX, causing Tesla’s stock to drop 14% in a single day.

Musk retaliated by suggesting Trump’s impeachment and alleging ties to unreleased Jeffrey Epstein files, though he later withdrew a threat to decommission SpaceX’s Dragon spacecraft.

Trump critics Mark Cuban and Anthony Scaramucci signaled interest in joining the America Party.

Cuban posted celebratory emojis and promoted @voterchoice, a group aiding third-party ballot access.

Scaramucci, whose brief Trump White House tenure ended in disgrace, requested a meeting with Musk and made a public plea to join Musk’s effort.

"I would like to meet to discuss. My DMs are open" he tweeted Saturday.

Meanwhile, the 119th Congress, seated in January 2025, has been the least productive in decades, passing only 27 bills into law as of July 2025, according to GovTrack data, compared to an average of 400-600 bills per session in the 1990s and 2000s.

Most legislation, including the recent spending bill, faced gridlock due to partisan divides and internal GOP fractures.

Some Republicans dismissed Musk’s threats.

Rep. Ralph Norman of South Carolina, a Freedom Caucus member, called Musk a patriot and downplayed retaliation fears.

"Elon Musk is a true patriot. He identified where our tax money went. For you, young people, you ought to be grateful that we had him,"Norman told Daily Mail.

Rep. John McGuire of Virginia, no stranger to tough primaries, suggested Musk would move on to bigger things.

"I think yesterday, he said more nice things about President Trump.” – Rep. John McGuire, told the publication.

The America Party’s platform remains vague, though Musk hinted at priorities like debt reduction, deregulation, and tech innovation.

Social media backlash dubbed it the "H-1B Party" due to Taneja’s role, and venture capitalist James Fishback postponed a Tesla-related ETF listing in protest of Musk’s political move.

The America Party’s launch, coupled with Trump’s fiery rebuke, signals a high-stakes battle that could reshape the political landscape.

With Musk’s wealth and influence, the 2026 midterms may see unprecedented disruption.