Investment firm Azoria Partners announced on 5/7 the postponement of its Azoria Tesla Convexity exchange-traded fund (ETF) listing. This decision follows Tesla CEO Elon Musk's declaration of forming a new political party in the US.
According to Reuters, this signals investor unease over Musk's new political venture. Azoria had planned to launch the Tesla ETF, specializing in the electric car company's stock and options, next week.
On 5/7, Musk announced the formation of the "America party," a day after polling users on X, formerly known as Twitter. "Today, the America party is officially formed to give you back your freedom," he wrote. Musk stated that two-thirds of the 1.2 million poll participants supported the decision.
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Billionaire Elon Musk at an event in Lancaster, Pennsylvania, on 26/10/2024. Photo: AFP |
Billionaire Elon Musk at an event in Lancaster, Pennsylvania, on 26/10/2024. Photo: AFP
Azoria CEO James Fishback criticized Musk's new party and reaffirmed his support for US President Donald Trump. "I have called for an immediate board meeting and requested that Elon clarify his political ambitions, and assess whether this is consistent with his full-time responsibilities as CEO of Tesla," Fishback wrote.
Fishback stated that Musk's announcement has eroded shareholder confidence in Tesla's future, especially after Musk withdrew from the Digital Online Government Efficiency (DOGE) Board and pledged to focus on running the electric vehicle manufacturer.
Musk's "America party" idea emerged last month after a public disagreement with President Trump over the "One Big Beautiful Act" (OBBBA), then still a bill. The billionaire opposed the act over concerns about increasing the federal deficit.
On 3/7, Musk polled the idea of forming a political party to rival the Republican and Democratic parties, openly challenging Trump. After President Trump signed the OBBBA into law on Independence Day, 4/7, Musk announced the formation of the "America party" the following day.
Over the past month, Musk and President Trump have clashed twice on social media. This discord with the president has contributed to a significant decline in Tesla's share price. The stock surged after Trump's re-election in 11/2024, reaching a high of over 488 USD by the end of last year. However, it has lost over half its value since its April peak, closing last week at 315.35 USD, down almost 17% year-to-date. Tesla's market capitalization has now fallen below 1,000 billion USD, to just over 988 billion USD.
Phien An (Reuters)
