Why Tesla Stock Was Hit Hard Friday

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Tesla's Elon Musk provoked another twitter storm on Friday by briefly smoking marijuana on a live web show with comedian Joe Rogan. Tesla's chief accounting officer, Dave Morton, said he was leaving the company after considering the level of attention Tesla has received and the "pace within the company".

Meanwhile, its chief people officer Gaby Toledano had decided not to return to the firm after a period of absence, according to newswire Bloomberg.

In a recent New York Timers interview, Musk did admit to using the prescription drug Ambien to help him sleep.

Tesla shares fell as much as 10% to $252.25 as of 9.46am in NY, the steepest intra-day drop since June 2016. Employees at both its Fremont, California, auto factory and Reno, Nevada, battery Gigafactory, have been living through what Musk has called "production hell", working to ramp up production of the company's critical Model 3 sedan.

At one point, Musk and Rogan shared a spliff, though Musk said doesn't make a habit of smoking weed, which he called "a cup of coffee in reverse".


Mr Isaacs and the second plaintiff, William Chamberlain, have alleged that Tesla's stock price was artificially inflated and federal securities laws had been breached.

The turmoil at Tesla Inc.

After Musk announced August 7 that he meant to take Tesla private at $420 a share, there was speculation that the billionaire was referring to marijuana when he tweeted because "420" is a coded reference for marijuana. While Musk deleted the original tweets, BBC News reports Musk appeared to renew the allegation in an August 28 tweet.

"One of those investors, Ross Gerber, told Business Insider's Graham Rapier Musk has "lost a lot of confidence in some of his core investment community".

He said: I think the future in where we are a space-faring civilisation out there among the stars, that is very exciting. He added that he still believed in Tesla, that "I have no disagreements with Tesla's leadership or its financial reporting".


Musk stunned investors a month back with tweets saying he had funding to take the company private for $420 per share, which many thought was a reference to weed. Morton had taken over for the company's previous account head, Eric Branderiz, who resigned on March 7 citing "personal reasons". Although he abandoned the idea less than three weeks later, he remained under investigation by the SEC.

"Elon's actions are making it harder and harder to support Tesla as a company", said analyst Gene Munster of Loup Ventures.

When discussing Musk's proclivity towards invention and innovation, the entrepreneur said that he first became aware that he was different around five or six years old.

FILE- In this June 24, 2018, file photo Tesla CEO and founder of the Boring Company Elon Musk speaks at a news conference in Chicago.


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