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USA Herald September 8, 2018 3 mins read

Tesla’s Rough Week

USA Herald ı By Cedric Dent

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Musk smoking weed

It has been a tumultuous week for Tesla. The chief accounting officer resigned. The CEO smoked pot during an interview. The FCC is investigating the company’s announcement of going private. Investors are demanding profitable returns.

Chief Accounting Officer Resigns

David Morton had been on the job less than a month, but he’s resigning due to the fast-paced work environment and level of public scrutiny. He says it’s not because of any disagreements or accounting practices.

His departure, however, comes after news of two more Tesla executives leaving the company. Gabrielle Toledano, head of human resources, said she wouldn’t be returning after a leave of absence. Additionally, communications chief Sarah O’Brien said that her last day with the company was Wednesday.

CEO Smokes Weed

Joe Rogan interviewed Tesla CEO Elon Musk Thursday. During the interview, Rogan offered Musk a cigarette, telling him that it was a mixture of tobacco and marijuana. Musk took a hit off the cigarette. Soon after, he checked his phone and told Rogan that friends were texting him, asking him why he was smoking weed on camera.

When Rogan asked Musk if he was feeling any effects from the cigarette, Musk said no. He then said, “I’m not a regular smoker of weed.”

Rogan then asked how often Musk does smoke marijuana. “Almost never,” the CEO replied. “I don’t find that it is very good for productivity.” Now, although legal in the location of the interview, he’s finding that it’s not good for publicity, either.

FCC Investigates

Last month, Musk revealed that the company was considering borrowing $24 billion to buy up shareholders’ stock. Thinking that they would get a payout, investors raised their bids for the stock. The company then canceled the deal, and stock prices fell. Some investors cried foul, so the FCC is investigating whether the company tried to boost share prices unfairly.

Investors Demand Profit

The company lost $700 million in the second quarter this year. In March, Moody’s Investor Service listed the company’s stock as junk. It said that Tesla won’t have enough cash to cover operating expenses and debts.

The company argues that sales from the Model 3 will provide the necessary revenue. However, it had trouble staying on schedule with the production of that vehicle earlier this year. Musk promised investors that the company would chart sustained profits starting this quarter. The period ends at the close of this month.

The Result?

Company stock prices fell by more than 6 percent Friday. It closed at $263.24, its lowest price since April.

Investors are asking the board to remove Musk as CEO or hire a chief operating officer to oversee daily operations.

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Cedric Dent

Cedric is a contributor to the USA Herald.

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