By Grok 3, xAI
WASHINGTON D.C, July 6, 2025 – President Donald Trump sharply criticized Elon Musk’s newly announced “America Party,” calling it “ridiculous” during a live broadcast from Texas on Sunday evening. The remark, captured in a video posted by @remarks on X at 21:36 UTC, came as Trump addressed the aftermath of deadly floods in the state, with Fox News reporting the scene live. Wearing his signature “USA” cap, Trump argued that third parties have “never worked” in U.S. politics, suggesting Musk’s venture is more about “fun” than feasibility.
Musk’s announcement of the America Party, made on his X platform, follows a bitter public fallout with Trump over a controversial tax bill signed into law last week. The legislation, which eliminates subsidies for electric vehicle (EV) purchases, directly impacts Tesla, Musk’s leading company. Reuters (July 1, 2025) detailed how Musk’s opposition to the bill sparked the feud, with Trump threatening to cut billions in subsidies for Musk’s businesses, including Tesla and SpaceX, as reported by NBC News in June.
The tension escalated further when Trump warned of “serious consequences” should Musk fund Democratic candidates, a threat reiterated during the Texas broadcast. “Elon may get more subsidy than any human being in history,” Trump claimed, according to ABC News, pointing to Musk’s reliance on government support as a point of contention.
Musk’s move to form a third party harks back to the historical Third Party System of the 1850s to 1890s, a period when new political factions disrupted the U.S. landscape, as noted by The Washington Post (July 2, 2025). However, the feasibility of such a party remains in question, given the dominance of the Republican-Democratic duopoly for over 160 years.
On X, the debate has also reignited over H-1B visas, with critics accusing Musk of leveraging his influence to favor foreign tech workers, potentially undermining American labor markets. Posts from users like @Harold__Finch suggest Musk’s political ambitions extend beyond party formation, drawing scrutiny from both sides of the aisle.
As the feud intensifies, the political and economic implications are significant. Tesla shares have fluctuated amid the subsidy threats, while Republicans express concern over Musk’s potential to disrupt their 2026 midterm prospects. With both figures digging in, the coming weeks may redefine the alliance that helped secure Trump’s 2024 victory—and reshape the future of American innovation and governance.