Elon Musk Warns of Shareholder Lawsuits Targeting Troubled Retailer Amid Pride Merchandising Controversy
In the midst of Target Corp.'s mounting troubles and controversy surrounding its Pride merchandising decisions, billionaire entrepreneur Elon Musk has predicted that the retailer will soon face legal action from shareholders. Last week, JPMorgan Chase & Co. downgraded Target stock from "overweight" to "neutral," prompting Musk to take to Twitter and state, "Won't be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value." The CEO of Tesla, Twitter, and SpaceX, who also holds the title of the world's richest person, made the comment in response to conservative commentator Charlie Kirk's report on Target's recent stock downgrades.
Target Stock Plummets as Controversy Erupts Over LGBTQ Merchandising
Target Corporation is experiencing its longest losing streak in 23 years, according to conservative commentator Charlie Kirk. In a tweet, he sarcastically remarked, "Happy Pride Month Target!" The retailer has faced criticism from both ends of the political spectrum for its handling of LGBTQ merchandise this year.
Conservatives were upset by the company's LGBTQ displays, which they considered excessive, as Target prepared for Pride month. Among the merchandise offerings were female-style swimsuits designed with the option for male individuals to "tuck" their genitalia.
On the other hand, liberals were angered when Target relocated and removed certain LGBTQ items in response to customer "outrage," as reported by FOX News Digital.
Since the controversy emerged, Target's market value has dropped by over $13 billion, reaching $60.24 billion as of Monday's closing price. The backlash has cast a shadow over the retailer's financial performance.