Concerns have been mounting among executives and board members about the behavior of Tesla (NASDAQ: TSLA) and SpaceX CEO Elon Musk as per the Wall Street Journal, sparking questions about the potential impact on the multibillion-dollar companies he oversees.
Musk’s unfiltered speech and provocative actions have been explained as expressions of creativity, manifestations of mental-health challenges, or consequences of stress and sleep deprivation, according to Musk and his supporters.
However, a persistent worry among some insiders is Musk’s alleged use of drugs, which could have far-reaching consequences for his health and the financial stability of his companies. According to individuals familiar with Musk and his companies, there are claims that the world’s wealthiest person has engaged in the use of LSD, cocaine, ecstasy, and psychedelic mushrooms at private parties around the world.
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Musk has publicly admitted to smoking marijuana and having a prescription for the psychedelic-like ketamine.
The potential risks associated with Musk’s alleged drug use extend beyond personal health concerns. SpaceX, the only U.S. company approved to transport NASA astronauts, has billions of dollars in government contracts that could be in jeopardy if Musk is found to be in violation of federal drug policies. Musk’s role in his companies is integral, potentially putting approximately $1 trillion in assets held by investors and tens of thousands of jobs at risk.
While Musk’s attorney, Alex Spiro, asserts that Musk is regularly and randomly drug tested at SpaceX and has never failed a test, concerns persist among those close to Musk. The alleged ongoing use of ketamine, in particular, raises apprehensions about potential health crises and the broader impact on Musk’s businesses.
Directors at Tesla, Musk’s electric-car company, have grappled with concerns over his behavior and alleged drug consumption. Some board members have informally approached Musk’s brother, Kimbal Musk, for help without explicitly mentioning drugs, while others have expressed worries about Musk’s actions, such as his 2018 tweet about taking Tesla private. The tweet led to an SEC investigation and Musk temporarily stepping down as Tesla chairman.
The issue of substance abuse at Musk’s companies is complicated by the close personal relationships between Musk and some board members. Attendees at parties and events, including those at Burning Man, have reportedly witnessed Musk’s drug use. The challenge for directors is whether to address the alleged drug use as a factor contributing to Musk’s behavior or attribute it to other factors such as sleep deprivation, which Musk has acknowledged.
Investors have historically overlooked concerns about Musk, including his drug use, especially during periods of exceptional performance by Tesla and SpaceX. In recent years, both companies have seen significant growth, with Tesla’s stock surging approximately 1,000% in the past five years. However, questions about Musk’s behavior have intensified, with some insiders suggesting that he may be losing control.
While there is no formal indication that directors will take action regarding Musk’s alleged drug use, the issue remains a topic of behind-the-scenes discussions. The challenge for board members lies in determining whether Musk’s personal choices, including potential drug use, impact the business decisions and overall health of the companies he leads.
Information for this briefing was found via Business Insider and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
