Tesla (TSLA) investors have clearly got a thick skin with the electric vehicle firm’s shares soaring today despite its chief executive Elon Musk being blasted by a raft of U.K. politicians and even the Pope.
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The Tesla share price was boosted on news that Musk had purchased roughly $1 billion worth of shares in the business. That gave investors confidence that Musk, fresh off the back of a whopping new trillion- dollar pay hike, was at Tesla for the long-haul.
Political Choices
That sort of commitment has been in doubt over the last few months as Musk tried to manage his day job with a role in the Trump administration as head of the Department of Government Efficiency.
That relationship eventually soured but not before it, alongside other issues such as an increasingly competitive marketplace, had hit sales and the company’s reputation.
Musk’s flirtation with controversial politicians and activists, however, remains a concern for the business going forward.
British politicians today called for Tesla to be blocked from receiving any contracts from the U.K. government. That was in response to Musk’s remarks to a far-right rally which took place in London over the weekend.
Wrong and Dangerous
Musk warned that violence was coming to the U.K. and even called for the dissolution of Parliament and fresh elections. He told the crowd that Brits have to “fight back or die” if they want to defend their country.
Women and equalities minister Baroness Smith said Musk’s comments were “wrong and dangerous.” Another politician said the U.K. government should target Tesla. “We need to hit him in the pocket where it hurts,” the person said.
If Musk doesn’t respect the power of the British, then there may be a somewhat higher authority he is prepared to listen to.
Pope Leo said at the weekend that the world was ‘in big trouble’ pointing to huge corporate pay packages such as Musk’s.
“Elon Musk is going to be the first trillionaire in the world. What does that mean and what’s that about? If that is the only thing that has value any more, then we’re in big trouble,” the Pope said.
Such comments can be a key risk to a business. The reputation of a firm can affect its ability to sell its products, which as can be seen above is a notable risk for Tesla investors and its board.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 13 Hold and 7 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $311.11, implying a 26.16% downside.
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