Between Political Risk and AI Restructuring: Musk's New Party Shakes Tesla Stock and CoreWeave's $9 Billion Acquisition

Following a poll on X, Musk announced the formation of a new "America Party," marking a definitive break with former President Trump. In response, Tesla stock briefly plummeted by nearly 8%, with investors concerned that the CEO's political activities are distracting from management. Meanwhile, against the backdrop of rising demand for AI infrastructure, GPU cloud giant CoreWeave acquired crypto miner Core Scientific in an all-stock deal valued at approximately $9 billion. By incorporating energy-intensive data centers, the strategy aims to reduce costs and secure capacity, accelerating the structural reorganization of the market.

1. Elon Musk's Political Ambitions and the Impact on Tesla Stock

1-1. Background of the "America Party" Formation

On July 5, 2025, Musk announced the formation of the "America Party" on X (formerly Twitter). Reversing his previous support for Trump in presidential elections, he stated that he decided to form the new party to criticize the large-scale spending and tax cut bills passed by the Trump administration, calling them "a further exacerbation of the fiscal deficit." Musk argued on his platform that the "two-party system is dysfunctional" and indicated his belief that overwhelming public support is the driving force behind the new party's establishment.

1-2. Former President Trump's Reaction

In response, former President Trump publicly condemned the move, calling it "ridiculous" and stating that "the establishment of a third party only invites chaos." While the White House avoided official comment, Trump dismissed the move, saying, "He can enjoy himself, but it means nothing," further deepening the rift with Musk.

1-3. Investor Concerns and Market Reaction

On the U.S. market the day after the announcement, Tesla stock fell by 7.5% at one point, marking a decline of over 28% year-to-date. Furthermore, analysts have raised concerns, including the postponement of the listing of a Tesla-focused ETF by Azoria Partners and William Blair's warning of a potential 40% drop in earnings forecasts. Dan Ives of Wedbush sounded the alarm, stating that "board involvement is essential" and pointing to the risk of political noise interfering with management decisions.

2. Overview of CoreWeave's Acquisition of Core Scientific

2-1. Acquisition Details and Terms

On July 7, 2025, GPU cloud service giant CoreWeave announced it would acquire crypto mining operator Core Scientific in an all-stock exchange. The transaction is valued at approximately $9 billion, with Core Scientific shareholders receiving 0.1235 shares of CoreWeave stock for each share held, representing a premium of about 66% over the pre-announcement closing price. The terms have been approved by both companies' boards, with the goal of closing in the fourth quarter of 2025.

2-2. Purpose and Strategic Significance of the Acquisition

Since its IPO in March 2025, CoreWeave's stock price has tripled, and securing power contracts and data center capacity has become an urgent issue to meet the surge in AI demand. By leveraging the large-capacity power contract network built as a crypto miner, the company plans to strengthen its rental GPU services for AI inference and training, with expected cost savings of over $500 million annually.

2-3. Impact on the Industry

The integration of Core Scientific's assets, which include energy-intensive data centers, is a symbolic move in the restructuring of AI infrastructure. By centralizing capacity that was previously dispersed, utilization efficiency is expected to improve, and the burden of loan interest is expected to be reduced. However, immediately following the announcement, CoreWeave stock fell 2% and Core Scientific stock fell 16%, reflecting persistent market skepticism regarding the effectiveness of the acquisition.

3. Trends in Tech M&A and Political Involvement Indicated by Both Events

3-1. Political Motives and Corporate Value

In recent years, political involvement by business leaders is not an unusual move. Musk has also moved closer to politics with the aim of increasing corporate value, but this latest split has backfired. Meanwhile, the battle for data infrastructure has become a central theme in M&A, and acquisitions by major players, such as Meta's investment in Scale AI and Salesforce's acquisition of Informatica, are becoming established strategies for maintaining AI competitiveness.

3-2. Acceleration of AI Infrastructure Restructuring

Starting with the CoreWeave–Core Scientific integration, the scramble for AI-ready data center capacity is expected to intensify. With private capital inflows continuing, such as Meta considering a $29 billion fundraising round, economies of scale through infrastructure concentration are becoming the key to competitive advantage.

4. Future Outlook and Risk Factors

4-1. The Future of Tesla and Mr. Musk's Political Activities

Depending on Mr. Musk's next moves, he could once again become a source of market instability. Former President Trump's suggestion of reviewing subsidies is a serious risk that could affect public support for SpaceX and Tesla. Strengthening governance within the board of directors and clarifying succession plans are urgent priorities.

4-2. Intensifying Competition in the AI Data Center Market

Data center capacity, particularly in the U.S., is expected to double by 2030, with securing power infrastructure and regulatory compliance acting as barriers to entry. As the battle between tech giants and emerging cloud vendors continues, the influx of private equity capital, in addition to M&A, will significantly impact market structure.

4-3. Key Points for Investors to Watch

• EV Tax Incentives: Under new legislation, the $7,500 federal EV tax credit is scheduled to expire on September 30, 2025, which may increase the perceived high cost of Tesla vehicles.

• Regulatory Credit Sales: Regulatory credit sales in Q1 2025 reached approximately $595 million, serving as a key component of Tesla's revenue structure. It has been warned that if these expire, it will directly hit profitability.

• M&A Integration Effects: Investors should closely monitor the cost-cutting performance and customer concentration risks following the CoreWeave–Core Scientific integration.

Based on the above, readers are encouraged to re-examine their portfolios and investment strategies from both political risk and tech M&A perspectives. While involvement in the promising AI infrastructure market is attractive, the balance between risk management and governance strengthening will determine the success or failure of investments.

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