According to the Wall Street Journal, certain Tesla Inc. board members experienced pressure to engage in drug use with CEO Elon Musk, fearing potential repercussions if they declined. This update follows a previous article from January, which had outlined allegations of Musk’s illicit drug use and the concerns of company executives and board members regarding Musk’s well-being and that of his companies. The Sunday report delved into the personal and financial connections that tightly link Tesla’s directors to the company and Musk. These connections include social events, vacations, and substantial investments in one another’s enterprises. The article indicated that most of Tesla’s directors have accumulated stock options valued at hundreds of millions of dollars during their terms, a significantly higher sum compared to board members of other companies. Corporate governance experts cited in the report suggested that such close ties could potentially hinder the independence of the directors.
Additionally, the report mentioned that certain current and former Tesla and SpaceX board members have direct knowledge of Musk’s drug use but have not taken action to address it.
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The volume of Musk’s and certain board members’ substance use, reportedly including cocaine, ecstasy, LSD, magic mushrooms, and prescription ketamine, has raised concerns.
As per the Journal, some of Musk’s associates and company directors have felt compelled to partake in drug use during gatherings he hosts, feeling unable to refuse due to the considerable financial gains they have realized from him and a desire to maintain his favor.
The report also mentioned that in 2022, Larry Ellison, co-founder of Oracle Corp., a friend of Musk’s and former Tesla board member, had offered Musk the use of his Hawaiian island to unwind and address his substance use. Around the same time, others purportedly encouraged Musk to seek rehabilitation.
In response to the report, Musk took to Twitter late Sunday to ridicule it and stated, “no one has ever mentioned rehab to me ever.”
Despite the concerns, board members have not taken public action to address Musk’s apparent drug use.
The lack of pushback from the board regarding Musk gained attention last week when a Delaware chancery judge invalidated Musk’s $56 billion compensation package, highlighting the board’s lack of independence and Musk’s strong connections to the directors responsible for negotiating on behalf of Tesla.
The potential substance use by Musk and board members raises numerous concerns that could impact the companies, including unpredictable behavior, potential legal violations, and vulnerability to exploitation. It could also contravene billions of dollars’ worth of U.S. government contracts with SpaceX and impact security clearances.
Bloomberg News reported last month that NASA stated it has no evidence of drug use at SpaceX, and Musk’s attorney informed the Journal in January that the CEO has never failed a drug test.
Tesla, which dissolved its media relations department in 2020, did not respond to requests for comment on Sunday. Similarly, SpaceX did not respond to a request for comment.
