Trump dismisses Musk’s new political party as 'ridiculous' and confusing

US President Donald Trump has criticised Elon Musk’s announcement of a new political party, calling the idea “ridiculous” and saying the United States works best under a two-party system.

Speaking to reporters before boarding Air Force One in Morristown, New Jersey, Trump said: “I think it’s ridiculous to start a third party. We’ve had tremendous success with the Republican Party. The Democrats have lost their way, but America has always been a two-party system.”

Musk unveiled his “America Party” a day earlier, escalating his ongoing feud with Trump and hinting at plans to challenge Republican incumbents.

Trump added: “Third parties have never worked, so he can have fun with it, but I think it’s ridiculous and it only adds to confusion.”

Musk announced on Saturday that he is establishing the "America Party" in response to Trump's tax-cut and spending bill, which Musk said would bankrupt the country.

In response, investment firm Azoria Partners, which had planned to launch a fund tied to Musk's electric automaker Tesla, said it was delaying the venture because the party's creation posed "a conflict with his full-time responsibilities as CEO."

Musk, who served as a top adviser to Trump on downsizing and reshaping the federal government during the first few months of his presidency, said his new party would in next year's midterm elections look to unseat Republican lawmakers in Congress who backed the sweeping measure known as the "big, beautiful bill."