Tesla stock takes a hit
Shares fall, executive walks after Musk appears to smoke pot during live webcast
Shares of electric carmaker Tesla Inc. fell more than 6 percent yesterday after the CEO appeared to smoke marijuana during an interview and the company’s accounting chief left after a month on the job.
CEO Elon Musk appeared on “The Joe Rogan Experience” overnight. About two hours into the podcast, which can be seen on YouTube, Musk inhales from what the host says is a combined marijuana-tobacco joint, which Rogan notes is legal. Rogan passes the joint to Musk, who also takes a sip of whiskey.
Shortly after smoking, Musk looks at his phone and laughs, telling Rogan he was getting texts from friends asking why he was smoking weed during the interview. Later, Musk says he doesn’t notice any effect from the joint, which he claims he rarely smokes.
As the video gained traction, more news hit: Early yesterday, the Palo Alto, Calif., company announced that Chief Accounting Officer Dave Morton resigned after a month on the job, citing public attention and the fast pace of the post.
The company disclosed the departure in a regulatory filing.
Tesla is under extreme pressure to turn a sustained net profit starting this quarter, as promised by Musk. But in the second quarter it burned through $739.5 million in cash and lost a quarterly record $717.5 million.
Tesla stock dropped 6.3 percent yesterday, cutting per-share cost by $17.71 to close at $263.24.
Moody’s Investor Service downgraded Tesla’s debt into junk territory back in March, warning that Tesla won’t have cash to cover $3.7 billion for normal operations, capital expenses and debt that comes due early next year.