Tesla In Turmoil: Executives Bail And Stock Plunges

11 September, 2018, 12:29 | Author: Bennie Parsons
  • Tesla chief Elon Musk smokes marijuana on live web show

News of chief accounting officer Dave Morton's departure added to the sense of uncertainty surrounding the company, sending Tesla shares lower in pre-market trading and following a freakish interview late Thursday in which chief executive Elon Musk was seen smoking marijuana.

Morton, a former CFO for computer-drive maker Seagate Technology, joined Tesla one day before Musk tweeted that he was considering buying out some investors at $420 a share and taking the company private. The U.S. Securities and Exchange Commission is now investigating that assertion, and Musk quickly backtracked on the plan.

"This caused me to reconsider my future", Morton said.

Tesla closed on Friday (local time) at US$263.24 a share after the recording of Mr Musk smoking a combined marijuana-tobacco joint on the Joe Rogan Experience podcast was aired online.

However, Musk admitted that "the electric airplane isn't necessary right now", as he is focusing on other things, including the many issues he's dealing with at Tesla right now.

Midday, Tesla shares were trading 6.4 percent lower at $262.90.

The pair quit a day after Musk provoked fresh concern after a joint on a live web show with comedian Joe Rogan.

Tesla did not immediately respond to requests for comment.

On August 8, the SEC launched an investigation into Musk's tweet, and investors have launched at least two lawsuits, including one on Thursday, according to the AP.


"I've thought about this quite a lot", Musk said of his electric aircraft idea. Not long after, it was also reported the company's human resources chief Gaby Toledano won't be returning from leave.

"It's quite hard to run companies".

Tesla's stock took a dive on Friday after news broke that two executives were leaving.

"You probably can't (smoke marijuana) because of stockholders, right?" "Before Tesla, Chris ran several ultra high volume factories at PepsiCo", Musk informed, adding that Laurie Shelby, Tesla's VP, Environmental, Health and Safety (EHS) will also report directly to him.

Crystal Guardado, a single mother, told Bloomberg News that she worked at Tesla's Fremont, California, manufacturing center for four months before being dismissed.

Especially freakish moments involving the Tesla chief of late include disparaging remarks about Vernon Unsworth, a Briton who helped save boys trapped in a Thai cave and the abrupt shutdown of Wall Street analyst's questions during a contentious earnings conference call.

Tesla has told investors it expects to turn a profit in the second half of this year, a forecast the company's head of investor relations, Martin Viecha, reiterated at a conference earlier this week sponsored by RBC Capital Markets, RBC analyst Joseph Spak wrote in a note on Thursday.

"Losing a chief accounting officer so quickly at a time when the company's finances are under pressure does not give good optics", said Mike Ramsey, an automotive analyst at Gartner.

Recommended:



Popular

Fuel prices rise again, petrol nears Rs 90 in Mumbai
In Delhi, a litre of petrol cost Rs 80.87 and diesel cost Rs 72.97 - both marking an increase of Rs 0.14 per litre. Almost 100 Congress leaders and workers were detained during the protest in Mumbai, police said.

Track major Hurricane Florence: Spaghetti models, forecast cone and satellite
If a major hurricane (Category 3 or higher) does make landfall along the southeast coast, the rarity of such an event is relevant. Issac is expected to gain strength in the next days, but then weaken by the middle of the week when it approaches the Caribbean.

Ravens, Redskins earn big wins, Steelers tie on road with Browns
Conner had 31 carries for 135 yards and two touchdowns. "I think he is going to have a great year", Browns coach Hue Jackson said. Pittsburgh losing doesn't help quiet the debate that the offense needs its playmaking running back to win games.

Aaron Rodgers carted into locker room with potential injury
Nagy and Vic Fangio deserve credit for calling a masterful first half that put the Packers all the way back against the wall. Patrick wasn't having quite as good a time when it was 20-0 and Rodgers was just coming back from an injury.

Serena Williams' outburst overshadows Naomi Osaka's U.S. Open victory
AS with any final weekend of a grand slam there was plenty of cash being dished out at the US Open the past couple of days. Tough thing for a chair umpire to deal with, as well. "Everyone was in a very awkward situation yesterday", Djokovic said.

BA hacked: 380,000 card payments 'compromised' in breach
Some 75,000 passengers were left stranded after a glitch forced the airline to cancel almost 726 flights over three days. The NCA is set up to tackle the most serious and organised crime posing the highest risk to public security in Britain.

North Korea holds military parade to celebrate 70th anniversary
Add North Korea as an interest to stay up to date on the latest North Korea news, video, and analysis from ABC News. The games are also a time-tested source of tourist dollars for North Korea.

Real Madrid captain Ramos: Enrique not hired to kick me out!
"I never go onto the pitch with the intention of injuring another professional so I have a very clear conscience", Ramos said. Spain got crashed out of the World Cup after being defeated in penalties against hosts Russian Federation .

Chinese billionaire Jack Ma reportedly retiring from Alibaba on Monday
He is a cult figure in China's internet industry and has attracted a big following among entrepreneurs and in pop culture. Alibaba started as a business-to-business marketplace, but had enormous growth when it started selling to consumers.

Mueller says he’d accept written responses from Trump
That's an effort that could lead to a Supreme Court challenge by the White House. Peter Carr, a spokesman for the Special Counsel's office, declined to comment.