Elon Musk might not be enjoying using his own social media platform right now. All afternoon, one of the day’s top trending hashtags in the United States has been #ElonMuskIsATraitor. The CEO’s recent controversial involvement in the Russia-Ukraine war inspired the trending hashtag. An excerpt for an upcoming biography on the Tesla (NASDAQ:TSLA) and SpaceX CEO revealed that he refused to allow his company’s Starlink internet services to be used in an attack on Russian naval forces based in Crimea last year. As the Associated Press reports, this has sparked questions regarding “whether the U.S. military needs to be more explicit in future contracts that services or products it purchases could be used in war.”
Since then, Russian President Vladimir Putin has praised Musk, sparking even more outrage. While X, formerly known as Twitter, users have let Musk know where they stand on the matter, TSLA stock has been slipping downward. This should further highlight the risk that Tesla’s leader could pose to his company.
What’s Happening With TSLA Stock
After enjoying some growth yesterday, TSLA stock is gradually slipping as negative momentum continues to mount. The week began with a Morgan Stanley analyst touting Tesla for its artificial intelligence (AI) applications. But today, controversy over Musk’s actions and stances toward Russia has overtaken it. This, in turn, has pushed shares down in the process. Musk objected to the accusations against him in the following post:
I am a citizen of the United States and have only that passport. No matter what happens, I will fight for and die in America.
The United States Congress has not declared war on Russia. If anyone is treasonous, it is those who call me such.
Please tell them that very clearly.
— Elon Musk (@elonmusk) September 11, 2023
Musk may be a citizen of the United States, but that doesn’t exempt him from the consequences of his actions. Right now, those consequences are reflected in the public’s sentiment toward him and his company. Whether or not Musk is an actual traitor is better left to lawyers and lawmakers to decide. But the court of public opinion seems to think he is, and that doesn’t bode well for TSLA stock.
Why It Matters
This isn’t the first time that Musk’s actions have put his company at risk. His takeover of X proved a sizable distraction from his duties as CEO of Tesla, sending share prices down significantly. Multiple experts agreed that his taking over a new company would likely prove detrimental to TSLA stock, and they weren’t wrong. Musk’s conservative political stances have ignited controversy before, but this time could easily be different. Denying aid to the Ukrainian military when they needed it isn’t the same as attempting to troll Democratic politicians on social media.
Many times, Musk has professed to be concerned with helping humanity with his business decisions. However, his actions don’t usually support that claim, and they certainly don’t in this case. In siding with Russia (and this isn’t the first time he’s done so), Musk made it clear where his priorities are as a human, and they do not reflect positively on him. This could certainly push TSLA stock down as investors grow weary of his leadership skills.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
