Uncertainty and Distraction: Investment Firm Halts Tesla ETF Launch After Elon Musk Forms New Political Party
Azoria Partners has slammed the brakes on its new Tesla-focused ETF, citing CEO Elon Musk’s “political ambitions” as a source of instability just a day after he announced the formation of the “America Party.”
NEW YORK – In a dramatic collision of high-stakes finance and polarizing politics, investment firm Azoria Partners announced Saturday it is indefinitely postponing the launch of its “Azoria Tesla Convexity ETF.” The decision is a direct response to Tesla (TSLA) CEO Elon Musk’s surprise announcement that he is forming a new U.S. political party.
The fund, which was scheduled to launch next week, was designed to invest in Tesla shares and options, offering investors a new vehicle to bet on the electric vehicle giant’s future. However, that future was thrown into question for the firm after Musk took to his social media platform, X, to declare, “Today the America Party is formed to give you back your freedom.”
The move triggered a swift and critical reaction from Azoria’s CEO, James Fishback, who publicly questioned Musk’s focus and commitment to his role at Tesla. In a series of posts on X, Fishback, an outspoken supporter of U.S. President Donald Trump, directly challenged the Tesla chief.
“I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO,” Fishback stated, culminating in the announcement that the ETF’s launch would be postponed.
Fishback argued that Musk’s foray into party politics undermines the confidence shareholders have in the company’s leadership. He pointed out that this move creates fresh uncertainty, particularly after Musk had previously suggested he was reducing his political engagements by stepping back from his role leading the “Department of Government Efficiency” in May.
The timing of Musk’s political declaration is notable, coming just after President Trump signed a major tax-cut and spending bill into law—legislation that Musk had fiercely opposed.
This public clash highlights the growing unease among some investors about the potential for Musk’s non-Tesla activities to create volatility and risk for the company’s stock. For an investment firm planning to launch a product entirely dependent on Tesla’s stability and growth, the CEO’s unpredictable behavior proved to be a dealbreaker.
Tesla has not yet issued a public comment on the matter.
Azoria Partners is no stranger to politically-motivated investment strategies. The firm’s website also promotes the “Azoria 500 Meritocracy ETF,” a fund that exclusively invests in companies that do not utilize diversity, equity, and inclusion (DEI) hiring targets. This background provides context for the firm’s pointed reaction to Musk’s new political venture, framing the ETF’s postponement as both a financial decision and an ideological statement.
