New York: President Donald Trump has criticized Elon Musk following the tech mogul's announcement of a new political party, labeling the initiative as 'ridiculous' and suggesting that Musk has lost his way.

Musk, who was once an ally of Trump, revealed on X that he has established the 'American Party' to challenge the existing Republican and Democratic parties.

Trump expressed his disapproval, stating, 'I think it’s ridiculous to start a third party.' He emphasized the traditional two-party system and argued that introducing a third party would only create confusion.

In a post on Truth Social, Trump lamented, 'I am saddened to watch Elon Musk go completely off the rails, essentially becoming a TRAIN WRECK over the past five weeks.'

He pointed out that third parties have historically failed to gain traction in the U.S., adding, 'The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS.'

Trump suggested that Musk's motivations stem from dissatisfaction with the president's decision to eliminate subsidies for electric vehicle purchases.

Additionally, Trump accused Musk of attempting to exert undue influence by recommending his friend Jared Isaacman for the NASA administrator position.

After Musk stepped down from his role as a special government employee during the Trump administration, Isaacman's nomination was subsequently withdrawn.

Trump remarked, 'I also thought it inappropriate that a very close friend of Elon, who was in the Space Business, run NASA, when NASA is such a big part of Elon’s corporate life.'

Despite their recent fallout, Musk remains the largest individual contributor to Trump's 2024 presidential campaign and had been a close advisor until recently.

Musk had previously criticized Trump's 'big beautiful' tax and spending bill, which he believed would significantly increase the federal deficit. This legislation was narrowly passed by Congress and signed into law by Trump this week.

The discord between the two men escalated last month, largely due to Musk's opposition to the bill.

Musk has expressed a desire for a party that prioritizes fiscal conservatism and reduced spending, though he has not provided extensive details about the party's platform.

The two-party system in the U.S. has faced criticism from both Democrats and Republicans, yet attempts to establish a third party over the last century have largely been unsuccessful.