Tesla and SpaceX CEO Elon Musk is denying allegations of frequent illegal drug use after a Wall Street Journal article claimed he has used substances like LSD and ketamine. Musk took to Twitter to defend himself while some company executives have raised concerns.
Musk Calls Claims “False and Misleading”
The WSJ article cites interviews with executives and board members at Musk’s companies who say they have observed signs of problematic drug use and urged him to cut back. According to Musk, these claims are “false and misleading,” tweeting that he takes “zero illegal drugs” and his “productivity remains unaffected.”
Musk did admit to smoking marijuana on Joe Rogan’s podcast a few years ago but says he gets “random drug tested frequently” due to SpaceX’s NASA contracts and has never failed one. Sources suggest SpaceX mandates testing about once every three years.
Tesla Board Faces Familiar Challenge
The Tesla board of directors now faces fresh scrutiny over their oversight of Musk and his impact on the company. Reports of erratic behavior by Musk are nothing new, with the “funding secured” tweet in 2018 being a prime example that resulted in Musk stepping down as chairman and paying a $20 million SEC fine.
So far, the board has taken a hands-off approach to Musk’s personal conduct unless it clearly violates the law or company policies. But sources say Musk has continued using recreational drugs since the Twitter fine, leading some executives to worry it could contribute to more rash decisions. Monitoring Musk’s tweeting remains an ongoing challenge.
Tesla Stock Drops Over Drug Use Fears
News of Musk’s alleged drug use sent Tesla shares tumbling nearly 5% early Monday over concerns it could impact his leadership. The automaker’s future heavily relies on Musk’s visionary direction which has led to massive growth. But any perceived threat to Musk’s focus could shake investor confidence.
This also comes amid recent worries about softening demand for Teslas in a declining economy. Critics warn the latest controversy could amplify sales troubles if the CEO seems distracted by personal issues. While Musk dismisses drug impacting his work, Tesla’s board now faces tough scrutiny over letting these activities progress uncontrolled.
SpaceX Management Raises Concerns
Unlike the Tesla board, SpaceX executives have been more vocal in confronting Musk about drug use according to reports. President Gwynne Shotwell and other leaders recognized signs at company events in recent years like slurred speech and wild mood swings. At times Musk became “unreachable” after parties when attempting to make key business decisions.
Sources claim Shotwell threatened to resign if Musk did not get counseling and curtail recreational activities. While Musk never formally sought treatment, his behavior has stabilized recently, and SpaceX operations remain steady thanks to Shotwell taking more responsibility. But more volatility could still await if Musk disregards advice, putting SpaceX’s future space missions in jeopardy.
| Company | Primary Concerns | Future Outlook |
|---|---|---|
| Tesla | Stock volatility/sales, erratic decisions | Board oversight already lacking, even more scrutiny may await |
| SpaceX | Operational delays, executive resignations | Depends heavily on Shotwell now mitigating risks |
Social Media Weighs In On Controversy
Musk’s drug use admission on Twitter drew plenty of reaction online from supporters, critics and business pundits:
“Elon getting high might explain a lot about Tesla quality control recently…” @mer__edith
“This explains the random Twitter rants about aliens and simulation theory when he’s high AF” @Cornubot
“If it was just weed, no big deal. But allegedly ketamine and acid while running $700B in companies? Can’t end well…” @UlrichRozier
“If drugs helped productivity, half of Silicon Valley would be meth addicts” @alexvoronov
So despite Musk’s denials, skepticism remains high over the CEO balancing reported drug use with his numerous CEO roles. Both companies now brace for added scrutiny and potential employee unrest following the WSJ’s troubling allegations. Tesla’s board in particular faces blowback for letting the eccentric billionaire operate unchecked.
What Happens Next for Musk and His Companies
Musk is no stranger to controversy throughout his career as an unpredictable tech mogul. But committing illegal acts while leading two major public companies could elicit serious repercussions from shareholders and regulators alike. Though Musk considers drug use a personal freedom, experts say his celebrity CEO status limits that freedom if ties to hurting Tesla or SpaceX emerge. Ongoing volatility should be expected.
Both the Tesla and SpaceX boards now stare down intense public pressure to restrain their visionary yet erratic leader before long-term damage occurs. But Musk has defied expectations before to build his companies into juggernauts through ambition and innovation. Unless a clear violation happens soon, the billionaire evading consequences remains the safest bet. Stay tuned for more twists ahead in this saga.
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