Conservative Activist Investor Drops Tesla; Criticizes Musk's Political Involvement

The American Conservative Values ETF (NYSE: ACVF), an ‘activist’ investment fund promoting conservative ideology, recently announced that it fully divested its holdings in Elon Musk’s Tesla Inc.

ACVF justified its Tesla divestment on its underwhelming business results and Musk’s increased political participation. 

“We believe Musk’s distraction with political activity is damaging shareholder value,” said William Flaig, ACVF CEO and co-founder, “as fiduciaries, we must act.”

Tesla’s stock lost strength after reporting poor performance shortly after Musk’s entrance into government.

Musk’s public row with President Donald Trump caused Tesla stock to further deteriorate, a trend that has continued until today. 

ACVF claimed that Tesla’s questionable results, including missed growth targets, product delays, and weakened consumer confidence, “are now directly tied to Musk’s personal political activity.”

ACVF’s divested funds will be reallocated to Newsmax Media, which ACVF assesses is better aligned with conservative values and positioned for success ahead of the 2026 elections.

Tesla will enter ACVF’s “Refuse to Invest” companies list, joining companies like BlackRock, Goldman Sachs, and Meta that ACVF believes are eroding shareholder value by excessive entanglement with progressive policies.

Since launching in October 2020, ACVF has reportedly performed in line with and sometimes exceeded the S&P 500.

Musk recently made headlines by launching a new political party named the ‘America’ party. 

The America Party has defined itself as a ‘centrist’ party prioritizing balanced budgets, free trade, and national security. 

ACVF alluded to Musk’s leadership of the America Party as further grounds for its Tesla divestiture. 

“Even when Musk’s politics aligned with ours, we were cautious,” said Tom Carter, ACVF president and co-founder.” But now, it’s clear Tesla is no longer focused on shareholders.”