Tesla (NASDAQ: TSLA) is back in the spotlight after a high-profile investment firm put its plans for a Tesla-focused exchange-traded fund (ETF) on hold, citing concerns over CEO Elon Musk’s political ambitions.
Specifically, Azoria Partners postponed the launch of its Tesla Innovation ETF, a product that had generated strong anticipation on Wall Street.
The firm said it was “taking a cautious approach” after Musk confirmed the launch of a new political movement dubbed the “America Party.”
The move comes amid a growing rift between Musk and President Donald Trump, who has since threatened to revoke federal subsidies and SpaceX contracts if Musk pursues his political agenda.
Azoria CEO James Fishback, a vocal Trump supporter, criticized Musk in a series of posts on X, calling on Tesla’s board to reassess whether Musk’s political involvement is compatible with his role as CEO.
Fishback said the political developments had shaken investor confidence, especially after Musk backed out of leading the Department of Government Efficiency (DOGE).
Notably, Musk’s political announcement came just as Trump signed a sweeping tax-cut and spending bill, legislation Musk has publicly opposed.
The ETF delay raises broader concerns beyond fund flows. Tesla shares closed on Friday at $315.35, slightly off their weekly high of nearly $320.
While the dip may seem minor, it reflects mounting worries about regulatory backlash, potential loss of EV tax credits, and fears Musk could lose focus on Tesla’s core business.
TSLA’s next price target
Bearish sentiment is creeping in, with some analysts warning that if political risks continue to grow and sentiment weakens, TSLA could slide below $250 or even test the $200 mark.
To this end, on the technical front, $250 is emerging as a critical level. A recent analysis by charting platform TrendSpider shows that Tesla’s weekly chart indicates that this price is the most heavily traded zone over the last five years.
Known as the Point of Control (PoC), it’s where the highest volume of shares has changed hands, making it a key battleground for bulls and bears alike.
Data from TrendSpider highlighted $250 as a major pivot point, drawing strong interest in buying and selling across market cycles. With TSLA now trading well above that zone, investors are watching to see whether the stock can hold its ground or slide back toward this crucial support level.
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