Elon Musk Foresees Class-Action Lawsuits against Target as Controversies Take a Toll on the Company
Renowned entrepreneur Elon Musk has expressed his expectation that retail giant Target will face class-action lawsuits from investors following a significant decline in the company’s value, surpassing $15 billion. The downward spiral began when Target’s “PRIDE” collection, a move aimed at supporting the LGBTQ+ community, sparked calls for a boycott.
Musk, the influential figure behind Tesla and currently the world’s second wealthiest individual, responded to a tweet by conservative commentator Charlie Kirk on Twitter. Kirk revealed that JP Morgan had downgraded Target’s stock due to mounting concerns, leading to the company’s longest losing streak in 23 years.
Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value
— Elon Musk (@elonmusk) June 2, 2023
In a tweet, Kirk celebrated Pride Month and drew attention to the downgrading of Target’s stock. The bank cited the retailer’s connection to millennials as a factor in their decision, while also mentioning the controversies surrounding the company, particularly the outrage ignited by their LGBTQ+-friendly “PRIDE” collection.
In response to Kirk’s tweet, Elon Musk expressed his belief that it wouldn’t be long before shareholders initiated class-action lawsuits against Target and its board of directors, attributing the lawsuits to the destruction of shareholder value.
Kirk encouraged legal action against Target, asserting that a large majority of Americans desire corporations that prioritize depoliticization over excessive political involvement. He urged shareholders to unite and work towards achieving this goal.
The New York Post reached out to Target for comment, but no response has been received as of yet.
Over the weekend, a new report surfaced, revealing that Target had funded a nonprofit organization that advocates for the closure of Mount Rushmore, labelling it a “symbol of white supremacy.” The nonprofit also called for the demilitarization of the US military, which they deemed “violent,” and the implementation of sanctions on Israel.
Target continues to face backlash for their LGBTQ+-friendly children’s clothing. The company’s stock has experienced a decline of nearly 17% in the past month.
Target and Bud Light faced criticism for their attempts to cater to the LGBTQ+ community, which intensified when they attempted to backtrack on their actions.
Although Target has a history of marketing to the LGBTQ+ community, recent incidents involving angry customers vandalizing Pride displays and threatening staff have brought negative attention to the company. In response, Target removed certain items, much to the disappointment of LGBTQ+ supporters.
Just six weeks earlier, transgender influencer Dylan Mulvaney received a commemorative Bud Light can featuring her picture. However, boycott threats quickly emerged, leading to tangible consequences.
According to Bump Williams Consulting, Bud Light’s sales in the United States plummeted by 23% in the month ending on May 13.
Target’s shares have also suffered, dropping by 20% since mid-May and resulting in a loss of $15 billion in market value. It’s worth noting that part of this decline can be attributed to investor concerns regarding the impact of inflation on consumer spending.
