Elon Musk's Alleged Drug Use Raises Concerns Among Tesla Board
The Wall Street Journal has reported that Tesla CEO Elon Musk may be grappling with a drug issue, triggering concerns within the company's board.
Cameron Jordan
- 2024-01-08
- Updated 02:36 PM ET
(NewsNibs) - Amid recent reports by the Wall Street Journal, Tesla's board of directors is facing concerns over alleged drug use by the company's prominent CEO, Elon Musk. This comes on the heels of several instances where the board has previously stood by Musk during controversies, including the defamation tussle related to the Thai cave rescue and Musk's infamous tweet about considering taking Tesla private. Musk's public behavior, including moments such as inhaling marijuana on a podcast in September 2018, has sparked both media attention and investor scrutiny.
Potential Repercussions for Tesla
Experts are raising flags that Tesla’s board may need to take decisive action if Musk’s alleged drug use proves to impact his decision-making or executive performance. Inaction by the board could lead to serious legal ramblings including class-action lawsuits from shareholders, thereby endangering the company's governance and stockholder trust. Given that Tesla's stock has seen a staggering 1,168% increase since September 2018, even temporary negative reactions to these reports could influence market confidence.
The composition of Tesla’s board, featuring names like Kimbal Musk, Ira Ehrenpreis, James Murdoch, Kathleen Wilson-Thompson, Joe Gebbia, and JB Straubel, aside from Elon Musk himself, suggests a diverse set of backgrounds and a possibility of various approaches in handling the situation. Tesla and Musk have not yet commented on the allegations, leaving the industry to watch closely how the board navigates this potential crisis.
While Tesla's shares have proven robust in the face of previous contentious episodes involving Musk, the board is currently under pressure to address the concerns raised and maintain the automaker's reputation and shareholder value. The situation remains dynamic as both investors and the public await further clarification and responses from Tesla's leadership.
