The CEO political gambit puts him at odds with a key investment firm and escalates concerns over Tesla’s future amid falling stock prices and weak deliveries.
A planned exchange-traded fund (ETF) focused on Tesla has been abruptly postponed after CEO Elon Musk announced the formation of a new political party, the “America Party.” The move prompted an immediate and sharp rebuke from investment firm Azoria Partners, which was set to launch the fund next week.
Musk revealed his new political venture on X, positioning it as a response to President Donald Trump’s spending policies, which he claimed could “bankrupt the country.” This announcement has added a new layer of volatility to Tesla’s stock (TSLA), which is already down 22% this year.
In a series of public posts, Azoria CEO James Fishback, a vocal supporter of President Trump, slammed the decision and called for Tesla’s board to intervene. “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, arguing the move damages shareholder confidence.
This development adds to a growing list of pressures on the electric vehicle giant. Investor concerns have been mounting over:
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Weakening Sales: Tesla reported a 13.5% drop in vehicle deliveries for the second quarter of 2025, its second consecutive quarterly decline.
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Intense Competition: The company is losing market share to innovative rivals in key markets.
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Political Distractions: This follows earlier controversy over Musk’s leadership role at the Department of Government Efficiency (DOGE), after which he had assured investors he was refocusing on Tesla.
The timing is critical, as Tesla is scheduled to report its Q2 earnings on July 23. Analysts are already bracing for bad news, forecasting a 19% drop in earnings per share and an 11.5% fall in revenue.
Amid the turmoil, Wall Street remains cautious. The consensus rating on Tesla stock is a “Hold,” with the average price target of $293.09 suggesting a potential downside of over 7% from its current level. Musk’s latest political maneuver has only deepened the uncertainty surrounding one of the world’s most-watched companies.
