Elon Musk responds to Tesla's ESG boot amid calls for a buyback
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As the market continues to crater, many of the once-loved names on Wall Street are getting hammered, like tech darling and retail favorite Tesla (NASDAQ:TSLA). Sliding another 2.8% to $690/share in premarket trade - following a 7% plunge on Wednesday - the EV and clean energy pioneer is off 45% over the past six months. With sentiment souring, many key players are weighing in, which comes in addition to those fearful of Elon Musk's devoted energies toward the chaotic $44B takeover of Twitter (TWTR).
Not helping the situation: S&P Dow Jones Indices (SPGI) (CME) gave Tesla (TSLA) the boot during the annual rebalancing of the S&P 500's ESG Index. "While Tesla may be playing its part in taking fuel-powered cars off the road, it has fallen behind its peers when examined through a wider ESG lens," commented Margaret Dorn, head of ESG indices, North America. "A few of the factors related to Tesla's (lack of) low carbon strategy and codes of business conduct... A Media and Stakeholder Analysis identified two separate events centered around claims of racial discrimination and poor working conditions at Tesla's Fremont factory, as well as its handling of the NHTSA investigation after multiple deaths and injuries were linked to its autopilot vehicles."
"Ridiculous," tweeted Tesla (TSLA) bull and once-disruptive fund manager Cathie Wood, while Elon Musk had his own fair share to say on his upcoming privately-owned social media platform. "A clear case of wacktivism. Exxon is rated top ten best in world for environment, social & governance (ESG) by S&P 500, while Tesla didn't make the list! ESG is a scam. It has been weaponized by phony social justice warriors."
Do something! Billionaire Leo Koguan, who claims to be the third largest individual shareholder of Tesla, is calling on the company to support its stock price via a buyback as shares continue to tumble. "Tesla must announce immediately and buy back $5B of Tesla shares from its free cash flow this year and $10B from its free cash flow next year, without affecting its existing $18B cash reserves with ZERO debt. Fremont, Shanghai, Austin and Berlin money printing machines are running in full speed, Tesla can invest in FSD, bot and factories while buying back its undervalued stocks. Shock and wake up few braindead analysts to their senses. Tesla is a Phoenix rising from the ashes."