US President Donald Trump launched a scathing attack on Elon Musk via Truth Social on July 6, 2025, labeling the billionaire a "Train Wreck" after Musk announced plans to form the "America Party" on July 5. Musk's X post declared the new party would combat government waste and restore freedom, claiming "by a factor of 2 to 1, you want a new political party" based on user polls.
Trump countered that third parties historically fail in US politics, adding "I am saddened to watch Elon Musk go completely 'off the rails'" and suggesting Democrats had "lost their confidence and their minds" over his crypto initiatives. The rift deepened following Musk's June criticism of Trump's "Big Beautiful Bill," which he called a "disgusting abomination" filled with pork-barrel spending. Trump retaliated by noting Musk previously voiced no objection to terminating federal EV mandates.
Crypto markets displayed minimal reaction: Bitcoin held steady above $108,000, Dogecoin (closely tied to Musk) hovered near $0.16, and the TRUMP memecoin briefly dipped to $8.47 before rebounding. Analysts caution prolonged conflict could introduce volatility if regulators or institutional investors become involved.