The relationship between President Donald Trump and Tesla CEO Elon Musk has turned openly hostile in recent weeks, as Musk sharply criticized Trump’s signature “One Big Beautiful Bill” and threatened to launch a new political party. What began as friendly alliances has now escalated into a public showdown, with each side leveling pointed attacks.

Musk: "Disgusting Abomination"

On June 3, Musk took to his social media platform X to denounce the GOP’s sweeping tax and spending legislation, calling it a “disgusting abomination.” He warned the bill would balloon the national debt and jeopardize America’s future. “Shame on those who voted for it,” he posted, intensifying the spotlight on the $3–$4 trillion measure

From Criticism to Political Strategy

Musk didn’t stop at just backlash. He asked his millions of followers, “Is it time to create a new political party in America that represents the 80% in the middle?” In the wake of this poll, he announced the formal creation of the "America Party"—a self-described platform for centrists and fiscal conservatives. Musk’s plan includes targeting Republican lawmakers who backed the megabill in next year’s midterms. Trump Fires Back

President Donald Trump’s response

President Trump responded swiftly and vehemently. In a Truth Social post, he dismissed Musk’s new political effort as “ridiculous,” brushing off suggestions of third-party chaos. At the same time, Trump threatened to withdraw federal subsidies and contracts from Musk’s companies—including Tesla and SpaceX—saying, “No more rocket launches, satellites, or electric car production, and our country would save a fortune” Trump also attacked Musk’s character and questioned his loyalty, calling him a “train wreck” and suggesting he might even consider deportation, though Musk is a naturalized U.S. citizen New Party Draws Instant Pushback

Mixed reactions from the Public

The fledgling America Party prompted mixed reactions. Florida Governor Ron DeSantis warned Musk that his initiative could backfire, arguing a third party might split the conservative vote and tip critical races to Democrats. Others—such as a newly piloted super PAC tied to Trump—have vowed to defend MAGA candidates from Musk’s challenge. Despite pushing forward, Musk’s party must still navigate federal regulations, state ballot laws, and historical skepticism of third-party viability.

Tesla Stock and Role of Influence

Musk’s political pivot has already impacted his business. Tesla shares dropped nearly 7% in early trading following announcements of the new party. Some investors worry Musk’s shifting focus might undermine operations, particularly at a time when Tesla is ramping up its ambitious robotaxi development.

Stakes in the Growing Feud

The growing feud between Elon Musk and President Trump carries significant political and economic stakes. Musk’s criticism of Trump’s tax-and-spending bill and the formation of his new "America Party" signal a potential disruption within the Republican Party, especially as he threatens to back primary challengers to GOP incumbents. In response, Trump has dismissed Musk’s efforts as “ridiculous” and threatened to cut off federal contracts to Musk’s companies, a move aimed at reinforcing his MAGA base and protecting his political narrative. Republican leaders, including Florida Governor Ron DeSantis, have expressed concern that Musk’s third-party push could split the conservative vote, possibly handing key victories to Democrats. Meanwhile, investors are watching closely, as Tesla’s stock has already come under pressure, highlighting the real-world business implications of Musk’s growing role in national politics.

Bottom Line

What began as mutual support between Trump and Musk has turned into a public political confrontation. Musk’s denunciation of the GOP megabill and bold creation of a third party mark a rare direct clash with the president. Trump’s full-throttle response—lambasting the move and threatening Musk’s business interests—underscores how personal and high-stakes the feud has become. With conflicting agendas, business implications, and political ramifications, this showdown may shape both the future of conservatism and Silicon Valley’s role in American politics.