Elon Musk‘s announcement of a new political party has led to the postponement of a Tesla Inc. TSLA exchange-traded fund (ETF) launch by investment firm Azoria Partners.
What Happened: Azoria Partners, an investment firm, announced on Saturday that it would delay the launch of its Azoria Tesla Convexity ETF. This decision came after Musk, the CEO of Tesla, declared his intention to form a new U.S. political party, reported Reuters.
The Azoria Tesla Convexity ETF, initially planned to invest in Tesla’s shares and options, has been postponed. The delay followed CEO James Fishback‘s public support for U.S. President Donald Trump and his criticism of the newly formed party on X, in response to Elon Musk’s announcement. He stated, “Elon left us with no other choice.”
Fishback also called for a board meeting to evaluate whether Musk’s political ambitions align with his full-time obligations as Tesla’s CEO.
Later Fisher also posted on X that while Elon was a ‘world class operator’ at Tesla and SpaceX, he was a failure at DOGE. “Any one who failed at the their only attempt at government reform should not be starting a political party founded on the promise of government reform,” wrote Fisher.
Musk announced after polling his followers on his social media platform X. The new party, named the America Party, was introduced to “give you back your freedom.”
Why It Matters: Musk’s announcement of the America Party has sparked mixed reactions among investors, analysts, and loyalists. This move has also had a direct impact on Tesla’s stock, with shares falling more than 5% in overnight trading, currently trading at around $297.70.
Analysts such as Dan Ives and Gary Black have expressed differing opinions on the impact of Musk’s political move on the Tesla brand. Ives sees it as a move in the “opposite direction,” while Black finds it difficult to predict the short-term impact.
On a year to date basis, ETFs with global exposure to Tesla, such as iShares Global Clean Energy ETF ICLN and KraneShares Electric Vehicles and Future Mobility Index ETF KARS surged 19.22% and 8.16%, respectively.
Musk's public clash with Trump over a major policy bill raising the U.S. debt ceiling by $5 trillion may create headline risk for Tesla and related ETFs, as his political outbursts grow more intense.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
