Elon Musk Warns Target About Supporting LGBTQ+

The new culture war between conservatives and progressives in recent weeks has also shifted to the corporate realm.

Conservatives accuse companies of bowing to progressive mandates by embracing gender equality values, fighting racism and antisemitism, and fighting for inclusion and diversity. (These issues are often summarized under the acronym ESG (Environmental, Social and Governance Policy).)

For many companies, being open to minorities and ESG is aimed at attracting new customers and leveraging new talent.

Conservatives then launched a counterattack. The first issue conservatives focus on is acceptance of the LGBTQ+ community. More specifically, transgender people. Therefore, they are attacking corporate efforts to connect with this community as Pride Month kicks off in June.

bud light (Tsubomi)- Get Free ReportBeer brands were among the first major companies to be targeted by boycott campaigns.But in the last few days, the target has been (target)- Get Free ReportDepartment store chains and their employees are prime targets for conservatives.

“The goal is to make pride harmful to brands.”

Problem for Conservatives: Target’s product line respects the LGBTQ+ community. That’s nothing new. Each June, Target will decorate its stores in the colors of Pride Month and offer specific merchandise. A cup that says “genderfluid”, a genderless bathing suit, and even her t-shirt for kids with the word “Bien” on it. I am proud” (“I am very proud”).

But in recent days, the initiative has sparked an outpouring of hatred from the country’s most conservative fringes.

Shelves were overturned and salespeople were attacked at some Target stores.

Right-wing political commentator Matt Walsh tweeted on May 24 that “the purpose is to make pride toxic to brands,” adding, “If they decide to put this garbage in our faces, the price is… You should know that you will be paying for “It’s worth nothing for what they think they’re getting. First Bud Light, now Target. Our campaign is moving forward. Let’s keep it going.”

The campaign appears to have worked, as Target decided to withdraw the affected products to protect its employees.

“For more than a decade, Target has offered a range of products aimed at celebrating Pride Month. We have experienced threats that impact us,” the company said. said on May 24.

“In light of this volatility, we are adjusting our plans, including removing items that have been at the center of the most serious conflicts.”

“We are now focused on continuing our commitment to the LGBTQIA+ community and working with them throughout Pride Month and the year.”

“Destruction of Shareholder Value”

It was in this context that conservative activist Charlie Kirk posted a message on Twitter, pointing out that analysts at JP Morgan were pessimistic about the outlook for the target stock.

Serial entrepreneur Elon Musk, who has become a conservative hero in recent months, didn’t hesitate to respond. He took the opportunity to say that Target’s actions would have serious legal repercussions for the group and its leaders.

Kirk said on June 1, “J.P. Morgan just lowered the price of Target after its longest losing streak in 23 years, citing ‘too many concerns.’ Happy Pride Month Target! !” he wrote.

Musk issued a warning to the target 24 hours later.

“It won’t be long before shareholders file a class action lawsuit against the company and board for destroying shareholder value,” said the billionaire.

Target did not immediately respond to The Street’s request for comment.

Target’s stock was downgraded by JP Morgan analyst Christopher Horvath on June 1.

“We continue to believe that while the share of wallets is moving away from products (51% of consumers), consumers are broadly weakening. [Target’s] Sales are ongoing,” Hovers wrote in a note.

“While remaining positive, [three-year] foundation, [Target] is returning a share of [one-year] Given consumer pressure and recent corporate controversy, we believe this stock market decline could accelerate into the new school year and drag on into the holidays,” Horvarth wrote.

“This may change [Target’s] After an impressive 12 consecutive quarters of positive numbers, traffic turned negative. “

The company was downgraded from Overweight to Neutral.

With the exception of the June 1 trading session, Target stock has ended lower in every trading session since the boycott campaign began. As a result, the stock fell 8.5%.

https://www.thestreet.com/technology/elon-musk-warns-target-about-its-support-of-lgbtq Elon Musk Warns Target About Supporting LGBTQ+