Tesla Inc. (NASDAQ:TSLA) stock rose 4.06% on July 17. Shares have taken a dip after founder and CEO Elon Musk found himself embroiled in yet another Twitter controversy, this time involving the cave rescue operation in Thailand.
Musk has made himself a target of the mainstream media after taking pot shots at journalists in tweets several weeks ago. For Tesla investors, the extra attention is unwelcome after the company had pulled together a string of good news weeks. This included improved production forecast for the Model 3, which has faced complications in 2018.
Drawing the ire of the media has caused some top Tesla shareholders to speak up. James Anderson, a partner at Baillie Gifford, said that "real steps" forward had been "overshadowed" by the ongoing drama. Baillie Gifford is the fourth largest Tesla shareholder. Investors and members of the media have begun to pressure Elon Musk to issue an apology in order to take the heat off of the founder and his company. No apology appears to be forthcoming and Musk has remained steadfast in holding his ground in the past.
The saga serves as an example of how damaging external factors can be no matter how unrelated they are to the core business. The recent stock performance at Papa John’s Int’l Inc. (NASDAQ: PZZA) and Starbucks Corporation (NASDAQ: SBUX) following racial controversies also demonstrate this new reality in the era of social media exposure.
