Tesla and SpaceX CEO Elon Musk is one of the most controversial figures in the automotive industry. He virtually changed the game by leading the charge—no pun intended—on the global wide adoption of EVs. On the other hand, Musk has made some very polarizing statements and questionable decisions that have caused disarray not just within Tesla but in his other companies such as the Boring Co. and SpaceX, as well. Now, it’s what goes on behind the scenes that could finally land Musk in real hot water with investors and company leadership.
It would be easy to dismiss Musk’s previous comments and actions as the personality of an eccentric billionaire. However, a new report from the Wall Street Journal alleges that at least some of Musk’s erratic behavior was fueled by alleged drug abuse, claiming that the CEO has taken LSD, cocaine, ecstasy, and psychedelic mushrooms, citing unnamed sources close to or within Musk’s inner circle.
With the exception of Musk very publicly smoking marijuana on the Joe Rogan podcast, there isn’t much hard evidence to suggest that he actually indulges in the substances named in the report. The WSJ report says that Musk’s alleged drug use is the reason why former Tesla director Linda Johnson-Rice didn’t seek re-election to the board in 2019. She was apparently frustrated with Musk’s behavior and concerned about his drug consumption, according to the report. We have reached out to Johnson-Rice and will update this story if we get a response.
SpaceX’s relationship with NASA was put into jeopardy when Musk smoked on Rogan’s podcast. As a government agency, NASA has a strict no-drugs policy with those it has contracts with, even if the substance is legal on a state level. (Marijuana remains illegal at the federal level.) SpaceX’s contract with NASA to ferry astronauts from Earth to the International Space Station is worth billions, and it could have possibly ended due to Musk’s decision to smoke a joint in front of millions of viewers. Use of other illegal drugs, like those named in the WSJ report, is also a violation of SpaceX and Tesla company policies. Therefore, if the alleged behavior is true, it’s easy to see why board members would be concerned, to say the least.
Will Elon Musk Be Fired As Tesla CEO?
As a publicly traded company, Tesla has a legal obligation to its shareholders to be as profitable as possible. The board and shareholders have the right to take action if they think leadership isn’t acting in the best interest of the company. Would they actually go as far as to remove Musk from his leadership position at Tesla? Musk is so intertwined with Tesla’s identity, and if his fans and followers see him ousted by his own company, it could severely hurt the automaker’s brand image.
It wouldn’t be the first time Musk’s power at Tesla was reduced. The infamous “funding secured” tweet, in which Musk said he was considering taking Tesla private at $420 per share, sent stockholders into a frenzy and caused confusion among the board, who claimed they had no idea he was going to make that statement. It resulted in a very public spat between Musk and the U.S. Securities Exchange Commission, which eventually fined the Tesla company $40 million for the debacle, and Musk had to step down as chairman (though he stayed on as Tesla’s CEO and denied any wrongdoing).
Assuming any of the allegations from the WSJ report are true, Tesla board members and stockholders may face a tough decision. Despite Musk’s previous actions, he has managed to keep Tesla as a market leader and has played a large role in its success. However, if Musk makes the board and the stockholders nervous with his actions, they may decide they don’t want him behind the wheel anymore. In typical fashion, Musk responded to the WSJ article on his platform X, joking that if drugs actually helped improve his productivity, he “would definitely take them.” He then went on to say that celebrity gossip publication TMZ has “higher standards” than the WSJ. We’ll update this article with any new allegations, evidence, statements, or actions by the Tesla and SpaceX boards or Musk himself.
