Musk's drug use worries Tesla and SpaceX directors

Executives and members of the board of directors of Elon Musk's companies, such as Tesla and SpaceX, are concerned about the billionaire's drug use. According to a newspaper report The Wall Street Journal published over the weekend, Musk consumes marijuana, LSD, cocaine, ecstasy and psychedelic mushrooms.

Drug use can constitute a violation of federal policies in several countries and jeopardize billions of dollars in government contracts. Musk did not respond to the newspaper's requests for comment. Alex Spiro, the businessman's lawyer, said that the billionaire is “tested regularly and randomly” It is “Never” drug use was detected.

One of SpaceX's biggest contracts is with the USA. Business is worth around US$14 billion. The company is the only one approved to transport astronauts from NASA, the North American space agency, to and from the International Space Station. In addition, the company does business with the Pentagon, selling, for example, satellites.

Contracts signed by the US government require companies to comply with the so-called Drug-Free Workplace Act and promote a drug-free culture with programs and policies, regardless of any state laws that may legalize the use of a certain substance.

Among those concerned about Musk is former Tesla director Linda Johnson Rice. Frustration with the businessman's volatile behavior and drug use reportedly meant she did not run for re-election to the electric car company's board in 2019.

In addition to concerns about government contracts, drug use would raise questions about Musk's executive role at publicly traded Tesla, where the board has a duty to oversee management to shareholders.

Tesla's code of conduct says the company maintains a drug-free workplace and prohibits all employees, including executives, from using substances, even outside the office.

Tesla board members would have spoken to each other over the years about the issue. However, according to the publication, nothing was said formally, in documents or minutes of meetings.

The report from the The Wall Street Journal it also says that:

• On many occasions, Musk consumes drugs at private parties where participants sign confidentiality agreements or hand over their cell phones at the entrance. The newspaper cites as sources people who witnessed the use of substances and others with knowledge of the subject;
• SpaceX executives who have worked with Musk for a long time reportedly noticed a change in the businessman's behavior at a general company meeting held in 2017. At the time, he gave a speech lasting about 15 minutes in which he was “incomprehensible” It is “babbled”. SpaceX president Gwynne Shotwell intervened and took the floor;
• In 2018, Musk got into trouble with NASA for smoking marijuana on comedian Joe Rogan's show. According to the businessman, the space agency required drug testing at SpaceX for a year;
• the current chairman of the board of Tesla, Robyn Denholm, sought out Kimbal Musk (brother of Elon Musk, member of the board of Tesla and who participated in the board of SpaceX until the beginning of 2022) to ask for help with the businessman's behavior, but without using the word “drugs”;
• Denholm, James Murdoch and other Tesla directors met informally several times with Kimbal Musk during breaks or after board meetings to ask how Elon Musk was doing. According to the newspaper, people familiar with conversations said that although the directors did not specifically ask about substance abuse, it was understood that the questions were about alleged drug use;
• Board members and people close to Musk believe he may have been on drugs when he posted on Twitter about having plans to take Tesla private, removing it from the stock market. The post made the company the target of an investigation by the SEC (acronym in English for the United States Securities and Exchange Commission) and Musk had to resign as president;
• Musk consumes ketamine for recreational use. The medication is an anesthetic that has been used experimentally to treat depression, anxiety and other types of disorders;
• investors “often” turn a blind eye to Musk's behavior, including his drug use, especially when Tesla is doing well, stock holders and people close to the board said.

Musk's lawyer said the report The Wall Street Journal mentions “false facts”. He, however, did not detail the information that did not correspond to reality.