Only the details change, the pattern, however, remains to be same. This time Tesla’s chief accounting officer called it quits after barely completing a month at Tesla. Reason being Elon Musk taking a hit off what it seemed to be a marijuana-tobacco joint during Joe Rogan podcast interview. The video went viral on YouTube. And unfortunately, the stocks plunged by 6% on Friday and saw its closure at $263.24 per share.
It is clearly visible that the electric automaker strives to earn its name as a mass-production profit machine instead of the money-losing boutique. Tesla has only a few weeks to fulfill Musk’s promise to declare sustained profits beginning in the third quarter after the company saw a loss of more than $700 million in the second quarter. Back in March, Moody’s Investor Service demoted the company’s debt into dumping ground, warning that the electric car producer won’t have enough cash to recover $3.7 billion for debts that come due early next year, capital expenses, and normal operations. Tesla claims to have cash from Model 3 mass-market electric car production to drive profits and pay the bill.
Amidst these mounting pressure, Musk needs to pull himself out of one more self-made crisis. Rogan, a podcast host, and comedian offered Musk a drag off a joint and a sip of whiskey which Musk accepted with pleasure.
Musk – attired in a black T-shirt that said “Occupy Mars” shortly after smoking looked at his phone and laughed, telling Joe about the texts that he was receiving from friends questioning about his smoking weed during the interview. Musk later went on saying he didn’t notice any traces of getting high.
When Rogan asked him about his smoking habits he said, “I’m not a regular smoker of weed. Almost never. I don’t find that it is very good for productivity.”
In the meantime, the company disclosed in a regulatory filing about the shocking departure of Morton, citing the pace of the company and the level of public scrutiny as a reason for stepping down. Morton made it clear that his resignation was not due to Tesla’s financial reporting or its leadership qualities.
A new report on Friday revealed that Tesla’s head of human resources, Gabrielle Toledano will not return after a leave of absence. Sarah O’Brien, communications chief also announced that Wednesday will be her last working day in the company.
However, replacements were appointed for O’Brien and Toledano on Friday itself. Musk promoted Vice President Jerome Guillen to President for automotive, supervising all auto operations inclusive of the parts supply chain. The CEO in his note to employees said that Guillen will send reports directly to him
The latest controversy doesn’t come as a surprise to many. A Dartmouth College professor of corporate communication, Paul Argenti stated that the reaction is not surprising.
He added, “The behavior on YouTube is obviously in line with what we’ve seen in the past. You can’t go on like that forever. It catches up with you.”
Well, all I can say is “From the window to the walls, enemies all on his ……”