(Bloomberg) — The fallout from Elon Musk’s posts espousing anti-Semitic views continues to spread, with Tesla Inc investors criticizing the billionaire and more advertisers fleeing his social media platform X.
Most read from Bloomberg
The European Commission on Friday joined International Business Machines Corp. in announcing its decision to stop advertising on the service, formerly known as Twitter, after Musk confirmed a post accusing the Jewish community of hating white people. Tesla shares fell 3.8% on Thursday, lagging the benchmark S&P 500 index little changed.
“I’ve never been in a situation in any company I’ve invested in where the CEO himself did so many distressing things,” said Ross Gerber, co-founder and CEO of Fortune. (Ross Gerber) said. “This is destroying the brand,” management company Gerber Kawasaki Inc. said on CNBC.
Kristin Hull, founder and CEO of Nia Impact Capital, said she was “shocked” by Musk’s post. The social impact fund, which held about $282,200 in Tesla stock as of mid-year, has waged a pressure campaign on the company for years, including through shareholder resolutions.
“The impact of the CEO’s erratic, racist and anti-Semitic rhetoric has a direct impact on Tesla’s brand and profits,” Hull wrote in an email Thursday, calling it an appropriate response to Musk’s actions. May include censure, demotion, reassignment, suspension or removal from Tesla’s board of directors.
Read more: IBM pauses X ads after reports of placing them near Nazi outposts
The European Commission recommended staff stop advertising on X due to “an alarming increase in disinformation and hate speech,” the European Commission said in a statement on Friday, which did not specifically cite Musk’s posts. The move was first reported by Politico.
Media Matters released a report Thursday showing ads from IBM, Apple Inc., Oracle Corp., Comcast Corp.’s Xfinity brand and Comcast Corp.’s NBCUniversal-owned Bravo television network were pro-Nazi on Place next to the post.
“IBM has a zero-tolerance approach to hate speech and discrimination, and we immediately suspended all advertising on X while we investigate this completely unacceptable situation,” a company spokesperson said in an email, citing Media Matters. .
A spokesperson said Comcast is investigating the matter. Apple and Oracle did not respond to requests for comment. The Financial Times earlier reported IBM’s decision.
Dustin Moskovitz, Facebook co-founder and head of project management software maker Asana Inc., said X CEO Linda Yaccarino should be asked to serve as the company’s chief technology officer Musk resigned.
“Yaccarino faces her biggest test yet as she decides whether to fire her anti-Semitic chief technology officer or risk losing more advertisers,” he wrote on another social media site, Threads. How will she handle this tricky but morally clear situation?”
Representatives for X did not immediately respond to a request for comment, and Musk did not respond to a request for comment.
–With assistance from Todd Shields, Jillian Deutsch and Craig Trudell.
(Updated with investor and European Commission comments starting in second paragraph.)
Most read from Bloomberg Businessweek