Elon Musk, CEO of Tesla, has drawn attention to the growing protests against his company, claiming during the quarterly earnings call that these demonstrators are “paid,” although he provided no evidence to support this assertion. Tesla has walked back its more incendiary rhetoric regarding the protesters. This change in direction indicates that the company is taking the long-standing grievance seriously and is worried about how it would affect operations and bottom line.
Tesla’s most recent annual report, filed in January, now includes a risk factor explicitly stating that protests could “harm our business and make it more difficult to raise additional funds if needed.” This recognition is a signal of the depth of concern with which Tesla is hopefully starting to take the protests that have been erupting all over the world. As Sean O’Kane—a former reporter on the transportation beat who currently covers the car and driver transportation industry for Vox—recently explained, these protests have been occurring for decades. He says their intensity is increasing.
To add insult to injury, proton Tesla’s legal team was forced to respond to the protests in writing in an 8K SEC filing. This document provided more clarity on the implications of the demonstrations, revealing how they have “incited protests, some escalating to violence targeting our operations, products and personnel.” These protests take an immeasurable toll on Tesla’s business operations. Yet this creates a pressing challenge at a time when the company is treading water in the punishing competitive transportation market.
Criticism reached a boiling point, in part thanks to Musk’s controversial role in the Trump administration. This has energized critics alongside activists, leading to even more social turmoil. In protest of this escalating discontent, a worldwide day of action against Tesla is planned for March 29. This latest event illustrates the growing anger from an array of stakeholders, between shareholders, consumers, and employees against Tesla’s practices and Musk’s public image.
Given these changes, Tesla has changed its narrative about the activism. The company’s annual report even refers to “criticism, which may be exaggerated or unfounded, such as speculation regarding the sufficiency or stability of our management team.” Tesla is clearly making efforts to assuage any upcoming investor concerns. The manufacturer is doing it while trying to steer through stormy skies around its CEO.
Surrogates from various activist organizations have already voiced their disappointment over Tesla’s new warning sign. Reactions from the Tesla Takedown movement One representative of the pro-sarcasm Tesla Takedown movement was elated, calling it “the endorsement we’d dreamed of. When telling the truth starts to feel like a threat, then you know you’re doing something right.”
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