Investment firm Azoria Partners has decided to postpone the listing of a Tesla (TSLA) exchange-traded fund (ETF) after the electric vehicle (EV) maker’s CEO announced a new political party. Musk revealed on X that he is forming the “America Party” in response to U.S. President Donald Trump’s “big, beautiful” tax-cut and spending bill, which the Tesla CEO believes would bankrupt the country. The announcement is expected to have an adverse impact on Tesla stock, which is already down 22% year-to-date.
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Azoria Unhappy with Musk’s Political Ambitions
Musk’s announcement of the America Party immediately triggered opposition from Azoria Partners, which was set to launch the Tesla ETF next week. Through the Tesla ETF, Azoria intended to invest in the EV company’s shares and options. Azoria offers the Azoria 500 Meritocracy ETF, which invests exclusively in the top 500 U.S. companies that do not impose hiring targets under their diversity, equity, and inclusion (DEI) programs.
In reaction to Musk’s announcement of a new U.S. political party, Azoria CEO James Fishback posted several comments on X criticizing the move and reinforced his support for President Trump. “I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO,” stated Fishback.
Fishback contends that the announcement impacts shareholders’ confidence in Tesla’s future, especially after Musk assured in May that he was stepping back from his role leading the Department of Government Efficiency (DOGE) to focus on Tesla, which has been under pressure amid rising competition.
Musk’s Political Activities Might Further Drag Down Tesla Stock
Tesla stock has declined 8.4% over the past month and is down 22% year-to-date, reflecting investors’ concerns about weak deliveries, margin pressures amid rising competition, a slowdown in the EV market due to macro uncertainties, and backlash over Musk’s political activities.
The company recently disappointed investors by reporting a 13.5% drop in its Q2 2025 deliveries, marking the second consecutive quarter of decline in deliveries. Tesla has been losing ground to rivals in key EV markets due to rising competition from emerging players and a lack of innovation.
Following the launch of Tesla’s robotaxis in Austin, TSLA bulls were hopeful of an improvement in the company’s prospects with the further rollout of robotaxis. However, the news of Musk’s America Party has escalated his conflict with Trump, who called the idea “ridiculous.” Given the reaction earlier this year to Musk’s role at DOGE, the latest move might further dampen investor sentiment and drag down Tesla stock.
Tesla is scheduled to announce its second-quarter earnings on July 23. Currently, analysts expect the company to report over a 19% decline in Q2 EPS (earnings per share) to $0.42. Revenue is expected to fall 11.5% year-over-year to $22.7 billion.
Is Tesla Stock a Good Buy?
Amid the ongoing challenges, Wall Street is sidelined on Tesla stock, with a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sell recommendations. The average TSLA stock price target of $293.09 implies a possible downside of 7.1%.
