Tesla Protests Are Now An Official Risk Factor For Elon Musk's EV Giant: Company Tells SEC 'Exaggerated' Criticism Could Hinder Fundraising Efforts

An SEC filing made by Tesla Inc. TSLA says that protests against the brand, as well as CEO Elon Musk, are a risk factor for the EV giant.

What Happened: In a quarterly report filed with the SEC on Wednesday, the company outlines that exaggerated or unfounded criticism of the company's management team by third parties can make it difficult for the company to raise funds.

"Tesla and its management are subject to significant amounts of commentary by a range of third parties. Such attention can include criticism, which may be exaggerated or unfounded, such as speculation regarding the sufficiency or stability of our management team, and has incited protests, some escalating to violence targeting our operations, products and personnel." The filing states.

The addition of protests and violence wasn't included in earlier filings, signalling a shift in legal language by the company as it officially recognizes the protests as a risk factor.

Why It Matters: The updated position in the filing comes in as Tesla reels from the effects of protests as well as vandalism against the company and its properties, largely due to Musk's involvement in U.S. President Donald Trump‘s administration and DOGE.

U.S. Attorney General Pam Bondi had earlier claimed that the attacks on Tesla properties were an act of "domestic terrorism," as she announced the DoJ will be seeking a 20-year sentence for one of the accused, who allegedly threw a pipe bomb at a Tesla dealership in Colorado.

Elsewhere, in the earnings call with investors on Tuesday evening, Musk claimed that the protests were funded by government waste and fraud. "The actual reason is that the the is that those receiving the waste and fraud wish to continue receiving it," Musk said.

However, Tesla owners in the U.S. continue to face troubles as insurance costs for their vehicles have experienced a surge owing to increased vandalism and declining used car value, among other reasons.

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