Trump hits out at Musk over plan to form new political party

US President Donald Trump has hit out at former close ally Elon Musk over the multi-billionaire's plan to launch a new political party.

"I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a train wreck over the past five weeks," Trump posted on his Truth Social platform on Sunday.

After teasing the idea for weeks, Musk posted on X over the weekend that he had set up the America Party to compete against the Republican and Democratic parties.

The Tesla boss's announcement comes weeks after a dramatic falling out with Trump, who appointed Musk to lead the Department of Government Efficiency (Doge), which is tasked with identifying areas to cut federal spending.

Trump said third political parties "have never succeeded in the United States" as the system was "seems not designed for them".

"The one thing Third Parties are good for is the creation of complete and total disruption and chaos."

Trump also took aim at Musk's push for an "Electric Vehicle (EV) Mandate", saying it would have "forced everyone to buy an electric car in a short period of time."

The president's tax and spending plan, which he signed into law on 4 July, ended tax breaks for electric vehicles.

He added that he had opposed Musk's proposal for an EV mandate from the beginning, explaining the reasons for omitting such vehicles in the legislation.

"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."

The legislation includes increased spending for border security, defence and energy production, offset by controversial cuts to healthcare and food-support programmes.

Musk floated the idea of a new political party online during his public spat with Trump as he repeatedly criticised his spending plans.