An investment firm that was set to launch a Tesla exchange-traded fund next week has since postponed the listing, after Tesla CEO Elon Musk announced that he is starting a new political party. James Fishback, the CEO of Azoria Investments, published a letter on X – the social media platform owned by Musk – addressed to Tesla Chair of the Board Robyn Denholm on Saturday, stating that Musk’s new endeavor “creates a conflict with his full-time responsibilities as CEO of Tesla.”
On Friday, Musk had posted a poll on his X account asking followers if he should start a new party. On Saturday, he declared that he had seen enough: “By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” The Silicon Valley financier continued by telling followers that “today, the America Party is formed to give you back your freedom.”
No further details were elaborated as to how the variety of technical complications associated with forming a new political party, such as navigating each state’s legal framework on the matter or gaining ballot access. It’s quite an about-face from Musk, who less than two months ago told the audience at the Qatar Economic Forum that he would “do a lot less” political spending in the future, adding “I think I’ve done enough.”
Fishback’s letter and accompanying post said that he and his firm were “encouraged” when the Tesla CEO stepped back from his role in the Trump administration at the Department of Government Efficiency (DOGE) at the end of May. Azoria’s Tesla ETF would have invested in the electric car company’s shares and options starting next week, however, Fishback states that Musk’s announcement of the America Party “undermines that confidence.” Fishback served as an advisor to DOGE and remains a vocal supporter of Trump’s presidency, calling himself an “FSD Republican” – meaning “fully support Donald” – in his X bio.
Fishback’s letter is not the first time that a Musk backer has expressed concern over his ability to run Tesla due to his publicly stated attention to other matters. In April 2023, a group of 17 shareholders with a combined $1.5 billion invested in the electric car company also published an open letter to Chairwoman Denholm, bemoaning that “the Board has permitted Elon Musk to run multiple companies, leading to an inability to address the multiple strategic and competitive issues facing Tesla,” and noting that at the time, Tesla had lost over $500 billion in market capitalization since he disclosed his stake in Twitter (now X) a year prior. Tesla’s stock currently stands at $315 a share, below a peak from last December of over $480.
