Tesla (TSLA) shares dropped on Monday, following criticism over Chief Executive Elon Musk's social media exchange with a British diver who helped rescue a Thai soccer team trapped in a cave.

The electric car giant saw shares in Tesla Inc. slump 3.5 percent in late-morning trading at $307.82. The drop in share price is almost exclusively related to news suggesting Musk could potentially face a libel suit regarding comments made about the diver. The Tesla Group's PR firm at its Manhattan office space will surely have its work cut out as it tries to repair any damage caused by Musk's comment.

According to reports, Musk hit out at British diver Vern Unsworth regarding a disparaging comment over the Tesla boss' offers to help the rescue mission for the missing Thai boys. The South African native's efforts to intervene in the efforts to get the 12 boys out of the cave were referred to as a "PR stunt" in an interview watched by millions on CNN.

In retaliation, Musk, without expanding or referencing any substantial information, labeled Unsworth as "pedo guy" in a tweet which was posted on Sunday before being deleted. "Pedo" is a shortened reference of the word pedophile.

Unsworth told AFP on Monday that he had not seen the tweet but had heard about it. When asked if he would pursue legal action against Musk, the Brit stated:

"If it's what I think it is yes."

Although a British national, Unsworth spends part of the year in Thailand. He gained international acclaim for his efforts in the 18-day rescue effort to get 12 boys and their soccer coach out of a cave in the Southeast Asian country. Having dragged on for more than two weeks, the mission was a success, and the remaining five boys were rescued on July 10.

According to reports, Unsworth had rejected an offer from Tesla's Musk for the use of a miniature submarine in the rescue efforts. Musk - who clearly didn't take too kindly to the rescuer's dismissal - reportedly lashed out on Twitter.

Musk is no stranger to controversy and has attracted negative attention in the past which has trickled through to Wall Street. Last weekend, Musk was the subject of criticism on account of his political contributions to conservative politicians and campaign groups. Social media lit up regarding the donations, with critics suggesting that they contradict Musk’s pro-environment and socially progressive stances. 

Reports helped add fuel to the fire on Saturday, with various publications including Salon publishing news regarding new Federal Election Commission filings which show that Musk donated $38,900 to a Political Action Committee by the name of Protect the House.

Musk was thrown in with other contributors to the same fund. NFL owner Robert McNair and casino tycoon Sheldon Adelson - who are both known to have made significant contributions to President Trump and other high-ranking Republicans - were just a couple of the names involved.

In May, Tesla shares fell following Musk's rejection of Wall Street analysts' questions regarding Tesla's future spending plans. It remains to be seen how Musk's latest PR gaff can be brushed under the carpet.