Anti-DEI Firm Postpones Tesla ETF Over Musk Announcement

Azoria, an anti-diversity, equity and inclusion investment firm, postponed the public listing of its Tesla ETF scheduled for this week after Elon Musk announced plans to launch a new national political party, according to a weekend social media post from the investment firm's chief executive.

James Fishback, founder and CEO of Azoria, said the decision to delay the Azoria Tesla Convexity ETF (TSLV) came in direct response to Musk's political announcement, according to a Saturday X post. The firm believes the political party creates a conflict with Musk's responsibilities as CEO of Tesla Inc. (TSLA).

"This creates a conflict with his full-time responsibilities as CEO of Tesla," Fishback wrote in the X post. "It diverts his focus and energy away from Tesla's employees and shareholders."

Tesla ETF Postponed

Azoria sent a letter to Tesla board chair Robyn Denholm expressing concerns about Musk's political ambitions, according to the firm. The letter encourages Tesla's board to meet and ask Musk to clarify his political plans.

"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," Fishback wrote in the letter to Denholm.

The firm praised Tesla's long-term investment potential in artificial intelligence, citing breakthroughs in robotaxis, its Optimus robot and full self-driving technology, according to the letter. Azoria believes no other company is positioned to lead the future like Tesla.

Fishback noted that when Musk stepped back from his work at the Department of Government Efficiency in May and returned attention to Tesla, shareholders gained renewed confidence, according to the letter. The CEO said Musk's political party announcement undermines that confidence.

Azoria Launches Separate Anti-DEI Fund

The Tesla ETF delay comes as Azoria prepares to launch its anti-DEI fund, the Azoria 500 Meritocracy ETF (SPXM), which will invest in the S&P 500 while excluding companies that use racial or gender quotas in hiring decisions, according to the company's website.

Azoria's top holdings include major technology companies like NVIDIA Corp. (NVDA), Microsoft Corp. (MSFT), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Alphabet Inc. (GOOGL) and Meta Platforms, Inc. (META), according to the company.

The SPXM fund uses a proprietary research methodology to exclude companies that have disclosed explicit quantitative demographic hiring targets from a universe of approximately 400 to 500 of the largest U.S. companies, with Fishback stating that investors previously "had no way to exclude DEI losers from their standard S&P 500 ETF," according to the company's website.

Azoria also has plans for a Golden Age ETF (GAGE), which will seek long-term capital appreciation by investing in companies aligned with five investment themes including generative artificial intelligence, real-world artificial intelligence, the revival of American manufacturing, American energy and power, and rising general prosperity, according to a June prospectus.