Tesla shareholders are expressing their disappointment and concern over Elon Musk’s recent controversial behavior on social media. Following his actions on the platform X and other media outlets, several investors have publicly called for his suspension. This comes as a blow to Tesla, a company that Musk played a pivotal role in building and making successful.
One shareholder, Jerry Braakman, CIO at First American Trust, emphasized that there is no excuse for the spreading of hatred by any CEO of a publicly traded company. Braakman believes that Tesla’s board should take strong action against Musk, suggesting a leave of absence for a month or two.
Tech leaders are also joining the chorus of disapproval. Apple plans to pause advertising on X due to the free hate speech being spread on the platform. Similarly, Lionsgate has decided to cease its ads on X, and IBM had already pulled its advertising off the platform earlier due to concerns over running next to Nazi content. Dustin Moskovitz, the co-founder of Facebook, has even called for Musk’s resignation from all his companies.
Despite the backlash, Tesla’s investors have not divested from the company. In fact, Tesla’s shares rose approximately 10% during this week, despite a slight dip on Thursday. This suggests that while they are furious with Musk’s conduct, they still have confidence in the company.
Kristin Hull, founder and CEO of Nia Impact Capital, is appalled by Musk’s endorsement of antisemitism and is concerned about the lack of serious punitive action from Tesla’s board. Hull suggests various appropriate responses, ranging from censure to removal.
Another investor, Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, expressed his outrage at Musk’s behavior and the damage it has caused to the Tesla brand. Gerber has even decided to replace his Tesla with a Rivian electric car next year.
Even the White House has condemned Musk’s promotion of antisemitic and racist hate. The timing of this controversy is especially sensitive, coming just a month after the deadliest day for the Jewish people since the Holocaust.
Musk’s behavior on X has not gone unnoticed, as the social media platform has been losing advertisers and revenue due to the controversies surrounding it. Tesla may also face the consequences of Musk’s actions on X, impacting the company’s image and potentially affecting its financial performance.
As of now, Musk has not made an official statement addressing the criticism.
1. Why are Tesla shareholders condemning Elon Musk?
Tesla shareholders are condemning Elon Musk due to his recent controversial behavior on social media.
2. What actions are shareholders calling for?
Shareholders are publicly calling for the suspension of Elon Musk.
3. Which other tech leaders are speaking out against Musk?
Apple plans to pause advertising on the social media platform X, and Lionsgate has also decided to cease its ads due to Musk’s behavior. IBM and Facebook co-founder Dustin Moskovitz have taken similar actions.
4. Have Tesla investors divested from the company?
Despite being furious with Musk’s conduct, Tesla investors have not divested from the company. Tesla’s shares have even seen a rise in value.
5. How has the controversy affected Tesla’s image and revenue?
The controversy surrounding Musk’s actions on the social media platform X has resulted in the loss of advertisers and revenue for the platform. This may also impact Tesla’s image and financial performance.