In a recent tweet, billionaire entrepreneur Elon Musk expressed his belief that Target Corporation (NYSE: TGT) could face lawsuits from investors due to its declining stock value and the ongoing controversy surrounding its Pride merchandising decisions.
Musk, CEO of Tesla, Twitter, and SpaceX, and the world’s wealthiest individual made this comment in response to JPMorgan Chase & Co.’s recent downgrade of Target stock from “overweight” to “neutral.”
Musk’s tweet came after conservative commentator Charlie Kirk highlighted Target’s consecutive stock downgrades. Kirk pointed out that Target is experiencing its longest losing streak in 23 years and made a sarcastic reference to “Happy Pride Month Target!”
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
Target has faced criticism from both ends of the political spectrum regarding its approach to LGBTQ merchandising. Last month, the company drew ire from conservatives for what they perceived as excessive displays of LGBTQ merchandise in preparation for Pride month. These displays included female-style swimsuits that featured options for concealing male genitalia, which further fueled the controversy.
However, Target also faced backlash from liberals when it subsequently relocated and removed certain LGBTQ items in response to customer outrage. FOX News Digital was the first to report on these actions by the retailer.
Since the controversy began, Target’s market value has plummeted by over $13 billion to reach $60.24 billion as of the closing price on Monday.
