Ad exodus: Elon Musk's antisemitic remarks shake X

Concerns over the proliferation of antisemitic content and discussions on the social media platform X have intensified, reaching a critical point with advertisers like Apple Inc. pulling out their ads. Musk, who actively interacts with antisemitic users on X, endorsed a post asserting that Jewish people have a "dialectical hatred" of white individuals, to which he responded, "You have said the actual truth."
The White House termed Musk's response as "unacceptable," emphasizing its potential threat to Jewish communities. Shareholders of Tesla Inc., where Musk serves as CEO, have also voiced concerns, with some calling for his suspension.

The controversy follows a report from Media Matters revealing advertisements from major companies, including IBM, Oracle, Apple, Bravo and Comcast's Xfinity, appearing alongside pro-Nazi content on X. IBM was quick to suspend ads on the platform until the situation is addressed.
In response to the backlash, the European Commission, Lions Gate Entertainment Corp., Paramount Global, Walt Disney Co., and Warner Bros. Discovery Inc. have all announced the withdrawal of their ads from X. The Anti-Defamation League reported a surge in antisemitism on X, increasing by over 900% in the week following the October 7 attack by Hamas.

Musk has courted controversies in the past, including a satirical tweet comparing Canadian Prime Minister Justin Trudeau to Adolf Hitler. Some stakeholders, like Ross Gerber of Gerber Kawasaki Inc., have expressed concern that Musk's actions are detrimental to the brand and overall reputation of his companies.

Apple, a major advertiser on X, announced a pause in showing ads on X, reflecting the precarious nature of their relationship with Musk, who took over the platform last year. Musk's remarks coincide with a global rise in antisemitism and Islamophobia amid the Israel-Hamas conflict.
In the midst of this, Musk accused the Anti-Defamation League of undermining X's ad revenue by highlighting extremist content, contributing to a 60% decline in ad sales on the platform. The EC cited an alarming increase in disinformation and hate speech as a reason for staff to stop advertising on X.

Despite X's efforts to address offensive content and label sensitive media, the controversy has triggered widespread concerns about the impact of Musk's statements on the brands associated with the platform. Shareholders and advocacy groups are calling for a response, ranging from censure to potential removal of Musk from his positions.