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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.
Watch the stock sink even quicker for Telsa and go bust by the end of this year?
Or watch the stock dive 'way down, watch Elon buy much of it up with the money he's already cashed out, and end up with a LOT less of the company owned by others.
Is he crazy like The Mad Hatter, or like a fox?
Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
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.
You miss the point so completely it is hilarious. Those people who stepped down aren't the idiots, bucko, you are.
The POINT is that Musk has incredibly poor judgement and Musk is given to displays that tend to be offensive. Most of us have smoked pot.
But Musk smoking it while in the public eye was indicative of poor judgement on Musk's part. It's not about the pot, it is about the POOR JUDGEMENT. And Musk has repeatedly displayed incredibly poor judgement.
Musk is a loose cannon, and people who control billions of dollars of investment capital DO NOT LIKE loose cannons.
Still a good interview: https://www.youtube.com/watch?...
Agreed.
It must be very difficult for Elon to deal with the pressures of the business side of his genius; especially since he seems to be cursed with control issues, making it difficult for him to delegate tasks, including the appointment of another CEO or two at his flagship companies.
Has he made some miscalculations recently? Sure. Can he rebound from this? Certainly. It's simply clear he has to prioritize time for what he's great at (inspiration and innovation) and learn to hand off to others what he can afford to delegate (daily business stress and decisions).
Personally, I hope he gets it together... there is a worldwide scarcity of visionaries who stand to make the earth a better place.
Happiness in intelligent people is the rarest thing I know.
Ernest Hemingway
People are pulling out of the market because Elon lies to manipulate shareholders and cost them billions and that has become even more obvious.
I don't have any reason to support Musk, but when flaming him let's at least get it right.
What he's being investigated for is not alleged lying to cost stockholders billions.
What he's being investigated for is alleged lying to cost stock traders - possibly stock manipulators, billions. Stock traders and hypothetical manipulators who DIDN'T own any stock, BORROWED and SOLD a bunch in the expectation that it would drop, some of whom apparently hired, through cutouts, a bunch of trolls to talk the stock down.
So when he said (unfortunately for him, without cutouts) that they might be going private and the stock shot up, the people who sold the borrowed stock were stuck having to buy some back at a HIGHER price than they sold it for (which is what you risk if you sell a stock short), but the people who actually owned it were just fine.
So the shorts closed out some short positions and took a big loss. Then, since Musk said that in a way that COULD be traced to him, they were able to sue him for the losses and complain to the SEC, getting it to start an investigation. THEN the stock DID start to tank, and the people who owned it DID take a loss.
But I wonder: Did the shorts actually close out all their short positions? Or are they still net short on Tesla - especially if you count, not just their direct holdings, but also all the investments of the web of companies and financial instruments in which they hold some interest?
Seems to me that, if they still have a short position, getting an SEC investigation going and/or announcing and filing a suit for billions would be just the sort of manipulation that they are claiming Musk was up to. Hold a short, file a suit, talk it up. Maybe switch to long and then settle and announce the settlement. And so on. (Always through cutouts, of course.)
IMHO anybody who sues over stock manipulation should have no net position (outside of a truly blind trust) in the stocks or other financial instruments whose performance might be affected by news of the suit and/or its progress.
A good move for Musk might be to investigate the plaintiffs, see if they might have had a net short position when they filed and/or announced their suit and/or complaint, whether they profited by it, and if so counter-sue, get it on record, and maybe not just get out from under but suck a few more billion out of them and into the company. (This would also establish the precedent of "gotta divest before you sue or you're manipulating", if it isn't there already. I am not a financial type or a lawyer.)
In the interest of full disclosure:
- I have no direct financial position, short, long, bond, etc. in Tesla (or other Musk enterprises).
- I don't know if any of the funds in my retirement plans might have a position ditto.
- As far as I know, neither my company nor any in which I have a financial interest (again, outside of any retirement plan funds), are currently engaged in any business or other relationship with Tesla, etc.
Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
"No matter how gifted you are, do yourself a gigantic favor, and resist the temptation to surround yourself with yes-men... everyone benefits from a critical viewpoint now and then."
Well, from a cynical point of view, I'm not so sure it benefits "everyone"...
On one hand, the other "yes-men": they are there usually because they lack other talents, so having someone different on board *and* having the leader listening to him, most probably would end the other ones' career in the company or, at least, their ability to stay with the "grown-ups". Yes, in the long term the company folds, so they go to the unemployment queue, but in the meantime...
On the other hand, the leader himself, he's usually the sociopathic and narcissitic kind that always land on his feet, so he takes pleasure from their current yes-men and will just take the hit and start again with a different idea and a different group of yes-men to support him.
I've been there... twice, specially one of them it was so exemplary it could make into an encyclopedia entry. Both times I was fired because not being "a team guy", both times I went out telling others when exactly the company would fold within a three months margin and both times I was right. The only advantage? Since I was fired relatively early in the going nowhere process, I took all my benefits; the others that stayed to the bitter end, not so much.