Slashdot Mirror
Tesla Stock Plunges After Senior Execs Leave, Musk Smokes Weed During Interview (arstechnica.com)
Today, we have learned that two executives have left Tesla. According to a filing with the Securities and Exchange Commission, Tesla's newly hired chief accounting officer Dave Morton decided to resign because "the level of public attention placed on the company as well as the pace within the company have exceeded [his] expectations." He added: "I want to be clear that I believe strongly in Tesla, its mission, and its future prospects, and I have no disagreements with Tesla's leadership or financial reporting." Tesla's human resources chief Gaby Toledano also announced that should would be leaving the company after taking a leave of absence last month. CEO Elon Musk wrote that Toledo "has been on leave for a few months to spend more time with her family and has decided to continue doing so for personal reasons. She's been amazing and I'm very grateful for everything she's done for Tesla."
These departures certainly have had an impact on Tesla's stock, which is down more than six percent to $262, but an interview Elon Musk conducted with Joe Rogan may have caused the most damage. While discussing a wide range of topics including his tweeting behavior, his Boring Company's flamethrowers, and "neuralink" devices, the Tesla CEO openly smoked a mixed tobacco and marijuana cigarette, sending the internet into a frenzy. Ars Technica reports: Morton joined Tesla on August 6, one day before Musk's infamous tweet claiming that he had "funding secured" to take Tesla private. Musk was forced to abandon the plan a couple of weeks later. Not only did Musk not have any kind of written funding deal, many Tesla investors saw little upside in approving a deal that would reduce Tesla's transparency and the liquidity of Tesla stock. Morton didn't explicitly mention last month's buyout saga in his statement explaining his departure. But a lot of the "public attention" Tesla received during Morton's brief tenure was focused on the possibility of Tesla going private. It's safe to assume that members of Tesla's finance team were working overtime on issues related to the proposal during Morton's month at Tesla. It's worth noting that marijuana is legal in California (and several other states) if you are 21 or older, but the federal government still strictly prohibits the Schedule 1 substance.
UPDATE: You can watch/listen to the nearly three-hour-long interview here. Rogan manages to pick Musk's brain in great detail and in a refreshingly laid-back manner. We highly recommend a listen if you want to learn more about Musk's ambitions and thought process.
These departures certainly have had an impact on Tesla's stock, which is down more than six percent to $262, but an interview Elon Musk conducted with Joe Rogan may have caused the most damage. While discussing a wide range of topics including his tweeting behavior, his Boring Company's flamethrowers, and "neuralink" devices, the Tesla CEO openly smoked a mixed tobacco and marijuana cigarette, sending the internet into a frenzy. Ars Technica reports: Morton joined Tesla on August 6, one day before Musk's infamous tweet claiming that he had "funding secured" to take Tesla private. Musk was forced to abandon the plan a couple of weeks later. Not only did Musk not have any kind of written funding deal, many Tesla investors saw little upside in approving a deal that would reduce Tesla's transparency and the liquidity of Tesla stock. Morton didn't explicitly mention last month's buyout saga in his statement explaining his departure. But a lot of the "public attention" Tesla received during Morton's brief tenure was focused on the possibility of Tesla going private. It's safe to assume that members of Tesla's finance team were working overtime on issues related to the proposal during Morton's month at Tesla. It's worth noting that marijuana is legal in California (and several other states) if you are 21 or older, but the federal government still strictly prohibits the Schedule 1 substance.
UPDATE: You can watch/listen to the nearly three-hour-long interview here. Rogan manages to pick Musk's brain in great detail and in a refreshingly laid-back manner. We highly recommend a listen if you want to learn more about Musk's ambitions and thought process.
Still a good interview: https://www.youtube.com/watch?...
AstroTurf somewhere else. The “most damaging” thing has nothing to do with pot. We have a “blue chip” stock that is run like a startup.
Actually he took one hit, said he didn't like it, never got high, and stated that he didn't feel it would be conducive to productivity. Everyone making a big issue of this is an idiot, especially the two idiots that stepped down over it.
Guns don't kill people; Physics kills people! - John Lithgow as Dick Solomon on Third Rock From The Sun
Yeah, plus Morton was known as a job hopper. He only worked 23 years at his last job at Seagate (a public company). He just took another job at a pre-IPO company today. I don't know why he didn't stick around. TSLA is going to $4000 and his options would have been worth billions. I guess he just isn't interested in money.
I suppose you would call Richard Feynman a failure as a physicist as well? I bet you never even tried it. Just because your siblings are losers doesn't automatically imply other people who smoke weed are in the same category. I'd say Musk is doing a pretty fucking amazing job of changing the world around him.
They are. But so far, the company has benefited from tax breaks and subsidies and never operated in a competitive environment. It's questionable whether they will actually be able to deliver a competitive product once the subsidies go away and these technologies become mainstream.
$4,000 / would be sixteen times the size of the largest car companies in the world.
Here's the reality:
Volkwagen revenue S$268 billion
Toyota revenue $261 billion
Daimler revenue $164 billion
General Motors revenue $146 billion
Toyota revenue $138 billion
Telsa revenue $11 billion
Tesla would need to grow ten times larger just to become a significant car company (though still not in the top 5). If they are phenemonally successful, it will justify a stock price of $80.
Look dude, it's clear you're a true believer-- I don't know what degree to which the things you're saying are deliberate spin, and what aren't. I am neither long nor short TSLA (am investigating perhaps buying convertible notes & hedging with shorting the stock, but that would be a mostly-long position).
1. David Morton wasn't brought in to take TSLA private-- or shouldn't have been, as that's not his expertise. Sure, he did a transaction like that as a junior financial executive-- 16 years ago, but has been a CFO of a public company for the past 3 years and now went to Anaplan which is working on going public. It's believed that he was being positioned to take the reins as TSLA's CFO before his departure. I can sure understand shitting a brick and polishing your resume if you go somewhere to be a public CFO, and your first day, the chairman/CEO tweets about privatization without talking to you.
2. It's never good, with this degree of scrutiny, to do the kind of stupid shit that has gone down the past month.
3. TSLA needs more capital. It is difficult to fund significant growth from operations, and practically impossible with TSLA's degree of debt loading. While it may be possible to survive Q1's debt payment requirements (or even rally the stock and convert the notes), that doesn't leave extensive funds for capital expansion.
That said, with TSLA's prior capitalization it should have been easy to get funding from a small (in share) equity round-- if stupid shit stops capital markets should open back up.
4. TSLA's valuation is predicated, even now, on making it through this challenging time and significantly growing and maintaining market share. This is never good if you have many market entrants who are willing to sell product at a loss (for regulatory compliance reasons). This is never good if other participants are willing, nay practically required, to enter the market and sell below cost and have greater access to subsidies and favorable trade terms than you.
TSLA has a better product and has an initial lead in share and a positive brand reputation. In a growing market, that's a wonderful position to be in. But success is predicated on strong execution, access to capital, and not doing stupid stuff.