It's too early to say whether this is an example of what not to do.

Elon hasn't realized any losses yet, while on paper the company may be worth less that game isn't over for him.

He hasn't done himself many favors by stirring up controversy with his own statements, but it isn't surprising that revenue for an ad-based business takes a hit when the brand is raked through the coals by a large enough group of people making noise. That could be one step towards it failing, or it could be one of many dips while the company is not rebranding itself and changing their business model.