A strange new bear thesis for Tesla (TSLA) -) emerged last week when Chief Executive Elon Musk highlighted an antisemitic conspiracy theory, then sent out a series of seemingly antisemitic tweets on X.
Musk, who has more than 163 million followers, vehemently agreed with a user who accused Jews of pushing "hatred against whites." Musk then criticized the Anti-Defamation League in part for pushing this so-called antiwhite racism.
Musk never once provided evidence or examples behind these claims.
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ADL is a nonprofit organization founded in 1913 to "stop the defamation of the Jewish people, and to secure justice and fair treatment to all."
Musk has been feuding with the organization for months, going so far as to blame it in September for Twitter's 60% drop in ad revenue. The ADL has regularly criticized the lax content-moderation policies Musk implemented on X since he took over the platform last year.
And though shares of Tesla have normalized since their 4% single-day drop Nov. 16, a number of investors expressed concern about the damage to the brand Musk might be causing.
Ross Gerber, co-founder and CEO of Gerber Kawasaki Wealth and Investment Management in Santa Monica, Calif., said on Nov. 16 that he received a "flood of messages" from clients wanting out of Tesla.
"I've never had this with any company I've ever invested in ever in my life, where the CEO of the company himself does so many detrimental things that it's just destroying the brand," he said.
Longtime Tesla bear says he saw this coming
Gordon Johnson, an analyst and longtime Tesla bear, said that he and other bears in 2018 had a realization similar to Gerber's, when Musk tweeted that he had "funding secured" to take the company private.
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The stock shot up 11% on the day in response to the tweet. About a month later, the SEC charged Musk with fraud.
"Thus, given money managers have a fiduciary duty to their clients NOT to be invested in 'dodgy' ventures/men, any money manager still invested w/ him deserves EVERYTHING that's ultimately coming their way," Johnson tweeted last week.
Musk has since maintained that he is not antisemitic, going so far as to file a lawsuit against Media Matters, an organization that highlighted antisemitism on X.
"There is a large graveyard filled with my enemies," Musk wrote in a post Tuesday. "I do not wish to add to it, but will if given no choice. Those who pick fights with me do so at their own peril, but maybe this is their lucky day."
Johnson responded by challenging Musk to debate the Tesla bear thesis on Twitter Spaces.
Musk has yet to respond to Johnson's challenge.
He has previously highlighted the bold predictions of Cathie Wood, a prominent Tesla bull investor.
"I forgot to add that I am my own worst enemy by far," Musk said. "No need for others to dig my grave when I’m doing it so well myself."
Tesla shares at last check on Tuesday were 2.6% higher above $241.
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