Stock Groups

Analysis-Tesla brand threatened by Musk harassment claim, criticism of Democrats -Breaking

[ad_1]

3/3
© Reuters. FILE PHOTO: Tesla CEO Elon Musk speaks about new Autopilot features during a Tesla event in Palo Alto, California October 14, 2015. REUTERS/Beck Diefenbach

2/3

Paul Lienert & Hyunjoo Jin

(Reuters) – Elon Musk is a well-known name in Tesla (NASDAQ) and has broken many rules. However, some employees and car owners may be concerned by Musk’s recent comments about politics and a sexual harassment claim against him.

Musk denied Thursday a Business Insider report that Musk sexually harassed an attendant aboard a private plane in 2016. He called the man who claimed it a liar.

In the middle of an uneasy effort to purchase Tesla, Tesla’s chief executive was seen the previous day. Twitter Inc (NYSE:) Announcing that he’d vote Republican now instead of Democrat, he called Democrats a party of hatred and division.

Tesla was also removed from the ESG Index this week, according to an executive. This was due to claims of racial discrimination in the company as well as crashes related to Tesla’s vehicles.

Musk countered by calling the ratings for environmental, socio and governance (ESG issues) scams. He also asked how the index could allow an electric car company to drop while simultaneously adding oil-and gas producers.

Tesla couldn’t immediately be reached for comment.

Musk’s outspokenness has caused headlines in the past, such as his calling one critic “a podo guy” via Twitter. Musk has been so close to Tesla, it is possible that this could impact Tesla’s sales, particularly in California.

According to Experian’s (OTC:), data, the state with the most left-leaning population is Tesla’s biggest market. It accounted for almost 40% of Tesla’s U.S. retail registrations. According to the California New Car Dealers Association, Tesla’s sales increased by almost 70% last year. It also had 6.5% of all California vehicles.

Twitter trend #BoycottTesla on Friday saw several users claim they had cancelled their car orders.

His efforts to establish a business that is sustainable in terms of energy usage was something I loved about him. However, he has become a divisive, attention seeking troll who is now threatening to destroy the integrity of his company. J Yeh (a Twitter user) stated that she will cancel her Tesla order. She describes herself as an attorney who has lived in multiple cities including Los Angeles.

Ute Bauer, a German Twitter user, said that “You lost an opportunity customer.” He also added in German, “To everyone reading this, cancel all your orders.”

Reuters couldn’t confirm if Tesla orders have been canceled.

Musk may be supported by many institutional investors, despite its strong performance. But that doesn’t mean all are happy.

Taylor Ogan (CEO of Snow Bull Capital), which has Tesla shares, stated that they are doing many good things. It is disappointing to see that it has been tainted with Elon Musk’s antics. Elon Musk, the greatest thing about Tesla, is also the worst.

Unidentified Tesla worker expressed frustration at Musk’s outside efforts to hurt Tesla’s stock price. He stated that the company must do more to resolve this issue.

Tesla stock shares fell almost 9 percent on Friday. This knocked $66 billion of Tesla stock market value. It is now at its lowest point since August last year. Analysts cited “distraction risk” due to the Twitter deal. Musk promised that Tesla is always on his mind on Thursday.

John Smith, a former vice president of GM and global product planner, stated that if water cooler discussions at work were focused more on Musk’s sexual harassment claims than Tesla products, it could lead to “corrosive results” for Tesla.

Musk’s anti-Democratic Party comments about Tesla and SpaceX could make employees “a bit annoyed and rattled,” said Jason Stomel of Cadre tech talent agency. SpaceX staff are more liberal in California than Tesla, according to Stomel.

NASA administrator Bill Nelson told Reuters that Musk is supported by a team of SpaceX executives and that the partnership was going well.

Musk is still loved by many people online. A Twitter user, @JVega103 claimed that he is a Republican and owns a Tesla. He also signed up for Tesla’s solar panels. The user thanked him for his efforts.

Some industry watchers wondered if Musk and Tesla might just move on from these latest controversy, like they did in the past.

Is Elon Musk crazy or crazy as a fox now? He has earned the benefit of the doubt as he is often playing chess when the rest of us are playing checkers,” Northwestern (NASDAQ:) University professor Erik Qualman said. Musk said it on “Saturday Night Live”: “What, did they think I would be normal?”

[ad_2]