Musk was probably 'under influence' when tweeting about Tesla's privatization
What's the story
In August 2018, Elon Musk shocked Tesla shareholders when he tweeted about "considering" taking the company private.
Now, a The Wall Street Journal report has revealed some Tesla board members privately worried Musk might have been on drugs when tweeting that.
Musk, Tesla's chairman at that time, tweeted, "considering taking Tesla private at $420"—420 is cannabis culture slang for marijuana.
The tweet surprised board members and led to concerns about Musk's drug use, sources familiar with the matter told WSJ.
More
Drug culture raises concerns for government contract compliance
The use of illicit substances might be prevalent among Silicon Valley players, reported WSJ last year.
However, for individuals like Musk, whose companies secure substantial government contracts, illegal drug use could pose significant worries.
As mandated by the Substance Abuse and Mental Health Services Administration, companies obtaining such contracts must adhere to the Drug-Free Workplace Act.
Musk's 2018 tweet brought about its own set of consequences.
Insights
Tweet led to SEC investigation
Musk's 2018 tweet about taking Tesla private led to an investigation by the United States (US) Securities and Exchange Commission (SEC), resulting in $40 million in fines against him.
As part of the settlement, Musk agreed to step down as the Tesla chairman while the company appointed two independent directors to the company's board.
Despite the penalties, he did not admit any wrongdoing in the case.
Details
Musk might've been on drugs in following interview too
Over a week after the tweet, Musk was interviewed by The New York Times, where he called leading Tesla "excruciating" and 2017 "the most difficult and painful" of his career.
The interview also covered the Tesla board's concerns regarding Musk's Ambien (sedative) use and its potential impact on his late-night tweeting patterns.
Sources informed WSJ that Musk might also have been "under the influence" during this interview, as Tesla's communications team didn't know he planned to speak with the reporter.
More
Several executives expressed concerns about his conduct
WSJ reported that several executives across Musk's companies worried about his drug use.
Also, former Tesla director Linda Johnson Rice decided not to run for reelection on its board due to concerns about Musk's drug use and unpredictable behavior.
Rice served a two-year term on the board ending in 2019.
She shared her worries with other board members and informally asked if they should investigate Musk's substance use.
However, her concerns were dismissed, according to people familiar with the matter.
Scenario
Present Tesla directors seek Kimbal Musk's help
The comprehensive report from WSJ has outlined the challenges faced by executives across Musk's enterprises in addressing his substance use and unpredictable public appearances and statements.
Some present directors at Tesla have reached out to Musk's brother, Kimbal Musk, seeking assistance with his conduct.
However, they have taken care to avoid explicitly mentioning "drugs" when expressing their concerns, reported the publication.
Facts
Musk's drug use has long been topic of discussion
Musk is known to have used recreational drugs like marijuana and ketamine.
He has also publicly stated that occasional ketamine use "is a better option" than treating depression with selective serotonin reuptake inhibitors (SSRIs).
In 2018, Musk even smoked weed live on the internet while filming an episode of The Joe Rogan Experience podcast.
In response, NASA initiated a safety evaluation for SpaceX, leading to a year-long mandatory drug testing for the entire company, as acknowledged by Musk himself.