Azoria Tesla Convexit ETF Postpones Listing After CEO Elon Musk Announces Formation of 'American Party'
Investment firm Azoria Partners announced on July 5 that it was postponing the listing of the Azoria Tesla Convexity ETF, after Tesla CEO Elon Musk announced the formation of a new political party in the United States.
According to Reuters, this is the first sign of investor dissatisfaction with Musk's new political activities. Previously, Azoria planned to launch a Tesla ETF, specializing in investing in the electric car company's shares and options, next week.
However, on July 5, Elon Musk announced the formation of an "American Party", a day after asking users of the social network X, "Today, the American Party is officially formed to set you free," he wrote. Musk said that two-thirds of the 1.2 million people who participated in the survey supported the decision.
Azoria CEO James Fishback criticized Musk's new party, while reaffirming his support for US President Donald Trump. "I am asking the board to convene immediately and ask Elon to clarify his political ambitions and assess whether they are consistent with his full-time responsibilities as Tesla CEO," Fishback wrote.
According to Fishback, Musk's announcement of a political party has undermined shareholder confidence in Tesla's future, especially after he withdrew from the Government Efficiency Board (DOGE) and promised to focus on running the electric car company.
Musk's idea of forming an "American Party" was raised last month, after he sparred with President Donald Trump over the "Big, Beautiful Bill" (OBBBA), which was then just a bill. The billionaire opposed it because he was concerned about increasing the federal deficit.
On July 3, Musk explored the idea of forming a political party to compete with the Republicans and Democrats, publicly confronting Mr. Trump. Shortly after President Trump signed the OBBBA into law on the occasion of Independence Day on July 4, Musk announced the formation of an "American Party" a day later.
In the past month, billionaire Elon Musk and President Trump have argued twice on social media. The discord with the White House owner has caused Tesla's stock price to plummet recently. This code had skyrocketed after Mr. Trump was re-elected in November 2024 and reached a high of more than $488 late last year. However, it has lost more than half its value from its peak in April and closed last week at $315.35, down nearly 17% from the beginning of the year. Tesla's market capitalization is now below the $1,000 billion mark, at more than $988 billion.
(according to Reuters)