President Donald Trump on Sunday called Elon Musk's plans to form a new political party "ridiculous," launching new barbs at the tech billionaire and saying the Musk ally he once named to lead NASA would have presented a conflict of interest given Musk's business interests in space, Reuters reported.

A day after Musk escalated his feud with Trump and announced the formation of a new U.S. political party, the Republican president was asked about it before boarding Air Force One in Morristown, New Jersey, as he returned to Washington upon visiting his nearby golf club.

"I think it's ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system, and I think starting a third party just adds to confusion," Trump told reporters.

"It really seems to have been developed for two parties. Third parties have never worked, so he can have fun with it, but I think it's ridiculous."