[C WORLD Special] The Ripple Effect of Elon Musk’s Launch of the ‘America Party’

[CEONEWS = Chief Reporter Lee Jae-hoon] On July 5, 2025, the United States was thrown into shock. Elon Musk, the billionaire entrepreneur behind Tesla and SpaceX, announced through his social media platform ‘X’ the sudden launch of a new political party: the America Party. This declaration is being seen not just as the founding of a new political party, but as a potentially explosive event that could shake the very foundations of American politics. In this special report, CEONEWS analyzes the background behind the creation of the America Party, Musk’s fallout with President Donald Trump, his strategy involving the AI ‘Grok’, and the potential long-term political impacts.

■ Musk and Trump’s ‘Political Divorce’

In the 2024 U.S. presidential election, Trump gained a powerful ally in Elon Musk. Musk actively supported Trump’s re-election, donating $280 million (about 273 billion KRW). After winning, Trump appointed Musk to lead the newly established Department of Government Efficiency (DOGE), and their alliance seemed strong. However, the honeymoon didn’t last long.

In May 2025, the Trump administration introduced the One Big Beautiful Bill Act (OBBBA), which became the spark for their rift. The bill, centered around massive government spending and tax cuts, was projected to increase the national deficit by over $3 trillion over the next decade. Critically, the bill clashed head-on with Tesla’s core business model. Cuts to EV incentives and the repeal of carbon credit systems were clear threats to Musk’s empire. Musk fiercely criticized the bill as a “dictatorship of waste and corruption” and eventually resigned from DOGE, publicly cutting ties with Trump.

In response, Trump declared that his relationship with Musk was “over,” while Musk countered by saying, “Trump deserves to be impeached,” intensifying the conflict. This political breakup pushed both men down irreversibly different paths. Musk ultimately decided to build his own political force — the America Party.

■ The Fusion of Technology and Politics

The emergence of the America Party gained momentum from the platforms and technology Musk had already built. In particular, the social media platform X became a powerful tool for spreading political messages and shaping public opinion. The decision to found the party itself was quickly made based on a poll conducted on X — with 66% in favor and 34% against. It was a swift and innovative communication method unheard of in traditional politics.

Adding to this was the AI chatbot Grok, which revolutionized political strategy. Equipped with access to real-time data and big data analytics, Grok can track voter sentiment and interests instantly. This gives the America Party a powerful advantage in developing specific policies that stand apart from those of the two major parties.

Musk has announced plans to shape the party’s platform based on policy solutions proposed by Grok, using its insights to tap into the concerns of centrist voters. This marks the first recorded case of AI directly participating in political decision-making at this level.

■ A New Political Axis: ‘Centrists vs. Extremists’

The most significant implication of the America Party’s creation is the rise of a third political force capable of challenging America’s bipartisan structure. In his launch announcement, Musk declared, “We will break the polarized structure of Republicans and Democrats and build a party that represents the 80% of centrist voters.” This strategy targets a majority of voters fatigued by extreme ideological battles.

With the Republican Party rallying its conservative base and the Democrats increasingly shifting left, the America Party could appeal to disillusioned voters and siphon support from both sides. Analysts suggest that if the party gains backing from the tech industry, startup founders, and young voters, it could produce meaningful results in the 2026 midterms.

However, breaking through the barriers of traditional American politics won’t be easy. Registering a new political party in the U.S. is complicated, and very few third parties have made it into the mainstream. Despite Musk’s vast financial and technological resources, resistance from entrenched political interests could be stronger than anticipated.

■ Trump vs. Musk: An Inevitable Showdown

With their relationship beyond repair, a political war between Trump and Musk now seems unavoidable. Shortly after Musk’s announcement, Trump hinted at retaliation by threatening to cancel government contracts with Tesla and SpaceX. Musk responded by referencing the ‘Epstein files’ and questioning Trump’s moral integrity, signaling a full-blown confrontation.

This clash could cause a segment of Trump’s Republican base to defect to the America Party, widening internal divisions within the GOP and potentially diminishing Trump’s influence. This marks yet another dramatic turning point in U.S. political history.

■ The America Party — Innovation or Chaos?

The launch of Elon Musk’s America Party marks the beginning of a new era where technology and politics intersect. Grok’s involvement represents a historic first in AI-driven political engagement. However, the political landscape of the U.S. remains deeply entrenched, and the success of a third party is still a formidable challenge. The two-party system is strong and resistant to change.

CEONEWS will closely monitor whether this new party will break through the traditional structure and spark innovation — or whether it will plunge American politics into further chaos and division. One thing is clear: U.S. politics has reached a new turning point where technology and public sentiment now play a central role. And at the heart of it all is Elon Musk.