What is so damning about Musk's "drug use," financial links to directors, and board inaction? According to a WSJ story

What is so damning about Musk's "drug use," financial links to directors, and board inaction? According to a WSJ story

According to the article, a few board members at Musk's companies voiced their concerns but did not come up with a response or start an inquiry.

Six firms are under Musk's supervision: Tesla, SpaceX, X, The Boring Company, Neuralink, and XA. (AFP/picture file)

According to the Wall Street Journal, which cited sources with knowledge of the situation, billionaire Elon Musk's "use of illegal drugs" was known to certain current and past directors of at least two of his businesses, SpaceX and Tesla.

According to the article, which was released on February 3, although board members of Musk's companies have expressed worry, they have not opened a formal inquiry or taken any public action.

The stunning revelation by the tabloid, which claimed Musk took various substances, including ones that were illegal in the US, and cited anonymous sources, was published one month prior to the WSJ piece.

The specifics of the most recent report are as follows:

relationships of wealth with shareholders

The Wall Street Journal highlighted financial connections between Musk and many directors, claiming that the boards of SpaceX and Tesla did not publicly address Musk's suspected drug usage, even though some of its members were aware of it.

Among the current and previous members of Tesla's board of directors, Musk has made investments in companies connected to computer mogul Larry Ellison, venture financier Antonio Gracias, former media executive James Murdoch, and Ira Ehrenpreis. According to the story, they have invested in businesses connected to both Musk and his brother Kimbal Musk in exchange.

Up until 2022, Ellison had a sizeable 1.5% ownership position in Tesla in addition to his role as a director.

In addition to their financial connections, Musk is recognized for having helped a few of them in their careers. The most well-known instance is Steve Jurvetson, who left his position at DFJ Way in 2017 after allegations of harassment.left the position of Chancellor Capital. Tesla kept him on as an independent director until his voluntary retirement in 2020, despite the claims gaining global prominence.

Citing sources, the story said that Juvertsen was close to Musk, having "deep financial ties" with him and going to parties where ecstasy and LSD were used. After Jurvetson got involved in controversy, Tesla executives used confidential communications to exert pressure on boards to grant Jurvetson an exceptional leave of absence.

The aforementioned analysis highlights that Tesla's payout to shareholders surpasses the average national salary by a substantial margin. The National Association of Corporate Directors reports that in 2023, board members at the 200 biggest American corporations received an average pay of $329,351.

By contrast, the paper states that the current members of Tesla's board have owned shares valued at over $8 million and have earned average yearly pay of almost $475,000 since 2015.

Interestingly, Tesla is listed on the Nasdaq, where regulations mandate that a majority of the board members of any publicly traded company be independent. But when Amalgamated Bank signed a shareholder letter in April urging Tesla board members to strengthen "little oversight" of Musk, the company's board became suspicious.

Through September 2023, Amalgamated Bank oversaw an estimated $180 million in Tesla investments.

Musk's purported drug habit

According to WSJ's January story, which included sources, Musk was abusing cocaine, ecstasy, LSD, and magic mushrooms.

According to the publication, Musk has been taking the prescription medication ketamine for recreational reasons while staying at the Austin Proper Hotel in recent years. Joe Gebbia, a board member of Tesla, was his buddy, and he went with him on those excursions to the five-star hotel in Austin, Texas.

According to persons with intimate knowledge of the situation, Gracias and Jurvetson, who are now directors on the boards of SpaceX and Tesla, respectively, also used narcotics with him.

There have been reports that Musk, his brother Kimbal, and several of his close associates frequent the Hotel El Ganzo in San Jose del Cabo, Mexico, for parties. The article mentioned the boutique hotel's reputation for holding drug-related parties.

According to a witness who informed WSJ that the business mogul also went to a party in the Hollywood Hills in late 2022 and drank ecstasy from a water bottle. According to the story, Musk's security team ordered everyone to leave the floor in order to protect their privacy before administering the medicine.

Fear for Musk's businesses

Musk is accused of using drugs, which might be dangerous for the six firms he manages, whose investors own over $800 billion. According to the WSJ article, several board members are concerned about the possible harm it may do.

Reported drug usage may jeopardize SpaceX's government contracts, violate tight anti-drug laws enforced by Musk's own firms, and result in the revocation of Musk's security clearance.

The journal was informed by persons with knowledge of the situation that several of Musk's friends and family have encouraged him to check into a treatment facility, expressing concern that his condition would become worse.

The story, which cited people with knowledge of the plan, said that Musk received advice to stop using drugs to spend time on his Hawaiian island in the winter of 2022 from his buddy and former Tesla director Ellison.

Despite reservations, Tesla directors remained silent during formal board sessions.

Musk's response so far

The leaders of SpaceX and Tesla have not yet commented on the most recent WSJ article. In response to a piece published in the journal last month, he said that he had been subjected to drug testing since 2018. Alcohol or narcotics in any kind were not discovered. @WSJ Putting a parrot cage for the bird isn't worth it, the person said on the social media site X, which they acquired in October 2022.

"I would definitely take the drugs if they really helped me improve my net productivity over time!" Musk had made an addition.

Additionally silent on the most recent WSJ article was Musk's attorney, Alex Spiro. Spiro, however, criticized the January story for being unfounded when it came to Musk's reported drug usage. According to the attorney, Musk has never failed a test despite taking them often at SpaceX.