Elon Musk expects retail giant Target to be hit with class-action lawsuits from investors after the value of the company sunk more than $15 billion since the chain’s controversial “PRIDE” collection sparked calls for a boycott.
Musk, the Tesla mogul and world’s second richest person, reacted on Twitter to a tweet by conservative commentator Charlie Kirk, who wrote: “BREAKING: JP Morgan just downgraded Target’s stock, after its longest losing streak in 23 years citing ‘too many concerns rising’.”
“Happy Pride Month Target!!” Kirk tweeted.
Kirk was reacting to JPMorgan’s decision to downgrade the company’s stock from “neutral” to “overweight” in a Thursday note, citing the retailer’s exposure to millennials.
The bank also cited “controversies” involving Target — namely the outrage sparked by the company’s LGBTQ-friendly “PRIDE” collection.
“Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value,” Musk tweeted in response to Kirk.
Kirk replied to Musk by encouraging legal action against the company, writing: “97% of Americans would prefer depoliticized corporations to the hyperpolitical ones of today.”
“Shareholders should organize to make this happen.”
The Post has sought comment from Target.
A new report over the weekend found that Target funded a nonprofit that calls for shutting down Mount Rushmore because the landmark is a “symbol of white supremacy,” demilitarizing the “violent” US military and imposing sanctions on Israel.
The “cheap chic” discount retailer continues to face backlash over LGBTQ-friendly kids clothing.
The Minneapolis-based company’s stock was trading more than 2.4% lower on Monday as of 2:52 p.m. Eastern time.
In the last month, the stock price has fallen by nearly 17%.
Target and Bud Light recently came under fire for their efforts to appeal to the LGBTQ community, only to come under more fire when they tried to backpedal.
Target has long marketed to the LGBTQ community.
But it recently found itself at the center of the bullseye when angry customers tipped over Pride displays and threatened staff in some stores.
Target wound up removing certain items, to the dismay of LGBTQ supporters.
Six weeks earlier, transgender influencer Dylan Mulvaney revealed on social media that Bud Light had sent her a commemorative can emblazoned with her picture.
Boycott threats immediately followed.
The backlash has produced real consequences.
In the month ending May 13, Bud Light’s US sales were down 23%, according to Bump Williams Consulting.
Target’s shares have plunged 20% since mid-May, wiping away $15 billion in market value, although that’s partly due to investor concerns about inflation’s impact on shoppers.
With Post Wires
This story originally appeared on NYPost
