Elon Musk’s controversial salute: Not good for business



Elon Musk’s controversial gesture at Donald Trump’s inauguration, which some have interpreted as resembling a Nazi salute, is likely to have significant impacts on his businesses. Tesla, one of Musk’s most prominent companies, may face immediate financial consequences.

At Tesla’s Gigafactory in Berlin-Brandenburg, Germany, activist groups made a bold statement by projecting a striking image onto the facility’s facade. The German activist organization Zentrum für Politische Schönheit, known in English as the Center for Political Beauty, recently shared a brief video on X (formerly Twitter) showcasing what it had done. The video featured a projected image of Musk’s flat-handed salute, accompanied by the word “Heil” rendered in Tesla’s distinctive futuristic font. This projection was meticulously aligned with the Tesla factory’s logo.

It is important to note that the “Sieg Heil” gesture has been prohibited in Germany for a considerable period as part of its postwar denazification initiatives. Nevertheless, the legality of Musk’s specific gesture in Germany remains uncertain. Legal experts have informed Newsweek that German courts would need to ascertain whether the gesture was intended to convey Nazi ideology before making any legal determination.

Some Tesla owners are reconsidering their purchases, with one Reddit user stating they are ending their lease early due to no longer wanting to be associated with Musk. There are also calls on Reddit for Musk to be replaced as Tesla’s CEO following the incident.

X (formerly Twitter), owned by Musk, is experiencing advertiser pullouts as major companies including Apple, Disney, Comcast, IBM, Warner Bros., and Lionsgate have paused advertising on X. The European Commission has also suspended its advertising on the platform and BMW announced it would no longer post on X These advertising losses could significantly impact X’s revenue streams.

Subreddits for sports teams like the Calgary Flames, Winnipeg Jets, and Toronto Maple Leafs have banned X links. While they were not advertisers, these boycotts – along with others – could reduce traffic and engagement for X from these communities. And reduced traffic and engagement ultimately lead to reduced revenue.

Dan Ives, an analyst at Wedbush Securities, described the controversy as “a dark day for Musk and Tesla” and “a black eye that will not be forgotten by many.”

As an X user, I’ve experienced a significant drop in followers, losing hundreds since the incident, and the numbers keep dwindling.

The gesture has drawn attention in political circles. It was brought up during a Senate confirmation hearing for Elise Stefanik as UN ambassador, indicating its reach into political discourse.

Even worse, Musk follows at least one Neo-Nazi page on X and has commented positively on their posts. Moreover, Neo-Nazi pages now flourish on X after their bans were lifted following Elon’s purchase of the company.

While the full extent of the impact on Musk’s businesses remains to be seen, the controversy has already led to financial consequences, damaged public perception, and increased scrutiny of his companies. The long-term effects will likely depend on Musk’s response and any further developments in the story.

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