Anti-Musk protests are now an official risk to Tesla’s business

Protests against Elon Musk and Tesla spread all over the world thanks to the CEO of the Trump administration. These protests are now inserted as an official “risk factor” in paperwork that Tesla must submit to federal organizers.

The new language, which was presented to the Securities and Exchange Committee on Wednesday morning, shows that the violent reaction against Musk has risen to the level of Tesla lawyers the need to warn investors that it may harm the company’s brand and its business.

Although risk factors are usually written to be extensive and excessive caution, the inclusion of the new (or old removal) can refer to the most important issues or developments for a company like Tesla, and it is important in a place, its legal team.

For years, Tesla included a risk factor to inform investors that “Tesla products, businesses, operations results, data and procedures for Tesla and their management are subject to large quantities of comments by a group of third parties.”

This danger factor warned this “criticism, which may be exaggerated or unfounded, such as speculation related to the efficiency or stability of our management team” can “harm our business and make it difficult to raise additional money if necessary,” according to the last annual language that was presented in January.

This language was changed on Wednesday.

Tesla has now updated the risk factor language to include criticism, “I incited the protests, some of which are escalating to the violence that targets our operations, products, and employees.” Tesla lawyers also expanded what is at risk, saying negative perceptions of protests, along with the broader criticism of the company, “may harm our brand and our business (including sales) and make it difficult to raise additional money if necessary.”

Despite the effects of Tesla in the new language, there is no known connection between global protests against the company and isolated sabotage against the galleries and the stations of the Shahan. (Musk went further on Tuesday, claiming to invite the quarterly profits in Tesla that the demonstrators were “paid” without providing any kind of evidence.)

It was clear that musk behavior might hurt Tesla. What was difficult to analyze is the amount of damage to which the protests were caused.

Tesla’s financial results on Tuesday showed a flagrant decrease in car revenues and profit on an annual basis, so it was clear that it was making some. Musk and other executives in Tesla also admitted that the protests created a “negative effect”.

But the SEC file on Wednesday, in some respects, provides a more clear answer: the protests are so important that Tesla’s lawyers had to admit them in writing.

A spokesman for Tesla Takedown, who helped organize protests in cities around the world, celebrated the inclusion of the company’s danger factors.

“We cannot ask for better support for our movement than the infiltration that officially called us as a dangerous factor. When the truth becomes a threat, you know that you are affecting,” they said in a statement via e -mail to Techcrunch: “The tremendous success in Tesla Takedawn has created a strong platform for the broader influence.”