Musk’s Social Media Meltdown: Tesla Stock Takes a Massive Hit as Controversial Posts Fuel Backlash.
Elon Musk’s actions on social media and his increasingly polarizing political statements have had a severe impact on Tesla, culminating in a dramatic 15% plunge in its stock price on Monday. This drop marks one of the company’s tesla stock worst trading days since it went public in 2010. The loss in stock value is just the latest blow for the electric vehicle company, which has seen its market value plummet by over 50% since its peak in mid-December, erasing a staggering $800 billion in market capitalization.
The cause of this steep decline is multifaceted:
On the one hand, broader market declines and fears of a possible recession have contributed to the general market downturn. However, Tesla’s woes are also tied to Musk’s controversial presence in Washington and his social media behavior. Musk, who has continued to lead Tesla despite his frequent involvement in political and cultural controversies, has used his Twitter account (now X) to amplify far-right conspiracy theories, tesla stock attack Democrats, and support anti-LGBTQ activists. He has also posted videos and comments promoting Tesla despite increasing public backlash.
In recent weeks, Tesla’s:
brand has been marred by protests calling for a boycott and urging investors to sell their shares. These demonstrations, part of the Tesla Takedown campaign, have gained significant traction globally, tesla stock and Musk’s online actions have only exacerbated the situation. He has accused wealthy liberals and philanthropists, including George Soros, of funding the protests, although these claims remain unfounded.
Musk’s comments and actions have led to growing anger from Tesla’s critics, with some even calling for a total divestment from the company. Protests at Tesla service centers have become a regular occurrence, and many have blamed Musk’s far-right affiliations for turning the company into a political lightning rod.
On top of this, Musk’s social media posts have also caused public relations issues for Tesla. His recent posts about the alleged arson attacks on Tesla dealerships, where he falsely claimed that Democratic non-governmental organizations were behind the violence, further fueled conspiracy theories and misinformation. This has prompted backlash from Tesla supporters, who are now questioning Musk’s leadership of the company.
Despite the mounting issues:
Musk has remained defiant, continuing to post inflammatory content and doubling down on his political stances. While Tesla continues to innovate in the electric vehicle market, tesla stock with Musk recently promoting the upcoming Cybertruck and the possibility of a robotaxi by 2026, these efforts are overshadowed by the ongoing social and political controversy surrounding the CEO.
As Tesla faces increasing challenges on both the stock market and the public relations front, its future remains uncertain. The sharp decline in stock value, combined with the mounting protests and Musk’s controversial actions, paints a troubling picture for the electric vehicle giant. Investors and consumers alike will be watching closely to see how the situation unfolds, and whether Musk’s leadership style will continue to impact the company’s future growth.
