Elon Musk says Target can expect shareholder lawsuits soon as retailer's woes mount

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Billionaire entrepreneur Elon Musk says it is just a matter of time before Target Corp. is hit with legal action from investors as the retailer continues to shed value amid controversy over its Pride merchandising decisions.

In response to the news that JPMorgan Chase & Co. downgraded Target stock from "overweight" to "neutral" last week, Musk tweeted, "Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value."

Tesla CEO Elon Musk predicts Target could be hit with shareholder lawsuits as the retailer continues to struggle amid controversy surrounding its Pride merchandising decisions. (Reuters/Aly Song//File / Reuters)

Musk, the CEO of Tesla, Twitter and SpaceX and the world's richest person, was replying to conservative commentator Charlie Kirk reporting on Target's first of two stock downgrades over the past week.

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Kirk noted Target stock is on "its longest losing streak in 23 years" and added, "Happy Pride Month Target!"

Target has been hit with backlash from both the right and left over its handling of LGBTQ merchandising this year.

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The company irked conservatives last month over its LGBTQ merchandise displays as it prepared for Pride month, which many viewed as excessive The retailer, which has supported LGBTQ Pride for years, this season offered merchandise that included female-style swimsuits that have the option to "tuck" male genitalia.

JPMorgan Chase & Co. downgraded Target stock from "overweight" to "neutral" last week, with analysts citing the possibility of a decline in sales due to consumers pulling back spending amid persistent inflation.

Ticker	Security	Last	Change	Change %
TGT	TARGET CORP.	121.76	-33.12	-21.38%

Target then angered liberals by relocating and removing some LGBTQ items in an effort to tamp down customer "outrage," as first reported by FOX News Digital.

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Since the backlash began, Target's market value has fallen more than $13 billion to $60.24 billion as of Monday's closing price.