Musk's political party announcement delays launch of a Tesla-focused fund
What's the story
Investment firm Azoria Partners has delayed the launch of its Tesla-focused exchange-traded fund (ETF). The decision comes after Elon Musk announced the formation of his new political party, the "America Party," on the social media platform X. The fund was originally scheduled to debut next week and would have invested in Tesla's shares and options.
CEO's response
Here's what Azoria CEO said
In light of Musk's announcement, Azoria CEO James Fishback took to X to voice his concerns. He questioned the compatibility of Musk's political ambitions with his responsibilities as Tesla's CEO. Fishback also said that the announcement has rattled investor confidence in Tesla's future, especially after Musk had previously announced his intention to step back from leading the Department of Government Efficiency (DOGE).
Party's mission
Musk announces formation of America Party
Musk announced the formation of the America Party on X, a day after polling his followers. He said, "Today the America Party is formed to give you back your freedom." The announcement came after US President Donald Trump signed a tax-cut and spending bill into law, which Musk had strongly opposed.
Additional fund
Azoria also manages another ETF
Apart from the Tesla ETF, Azoria also manages the Azoria 500 Meritocracy ETF. This fund invests only in the top 500 US companies that do not have hiring targets under diversity, equity, and inclusion (DEI) programs. The move shows Azoria's commitment to a merit-based investment strategy amid changing political landscapes and corporate policies.