NEWS YORK

Elon Musk, the controversial CEO of Tesla and SpaceX, finds himself at the centre of a growing storm following allegations of drug use that could potentially threaten his leadership positions. A recent Wall Street Journal report has ignited a firestorm of speculation and concern among investors, board members, and industry observers.

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The report, citing unnamed sources close to Musk's inner circle, claims that the billionaire entrepreneur has allegedly used a variety of substances, including LSD, cocaine, ecstasy, and psychedelic mushrooms. While concrete evidence of these claims remains elusive, the allegations have nonetheless sent shockwaves through the business world and raised questions about Musk's fitness to lead two of the most innovative companies in the tech and automotive sectors.

This isn't the first time Musk's behaviour has come under scrutiny. His public marijuana use during an appearance on Joe Rogan's podcast in 2018 caused significant controversy, particularly given SpaceX's contracts with NASA, which maintains a strict no-drug policy for its contractors. The incident highlighted the delicate balance Musk must strike between his public persona and his responsibilities as a CEO of multiple high-profile companies.

The WSJ report suggests that Musk's alleged drug use may have already had tangible consequences within Tesla's leadership. Former Tesla director Linda Johnson-Rice reportedly chose not to seek re-election to the board in 2019, purportedly due to frustrations with Musk's behaviour and concerns about his alleged substance use. This claim, if true, underscores the potential for Musk's personal conduct to impact corporate governance and stability.

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For Tesla and SpaceX, the stakes are high. Both companies have achieved remarkable success under Musk's leadership, but they also rely heavily on his vision and public image. The allegations of drug use, if substantiated, could violate company policies and potentially jeopardise important contracts and partnerships, particularly in the case of SpaceX's relationship with NASA.

The situation raises complex questions for Tesla's board and shareholders. As a publicly traded company, Tesla has a fiduciary duty to act in the best interests of its shareholders. If Musk's behaviour is deemed detrimental to the company's success or reputation, the board may face pressure to take action. However, Musk's role as a driving force behind Tesla's innovation and market position complicates any potential decision to limit his influence or remove him from leadership.

This isn't the first time Musk's actions have led to consequences. In 2018, his infamous "funding secured" tweet about taking Tesla private resulted in SEC fines and his removal as chairman of the Tesla board. While he retained his position as CEO, the incident demonstrated that even Musk is not immune to oversight and regulation.

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In response to the WSJ article, Musk took to his social media platform X (formerly Twitter) to dismiss the allegations. With his characteristic blend of humour and defiance, he joked that if drugs actually improved his productivity, he "would definitely take them." He further criticised the Wall Street Journal's reporting, claiming that even celebrity gossip outlet TMZ has "higher standards."

As the situation unfolds, Tesla and SpaceX stakeholders will be watching closely for any developments that could impact the companies' operations or stock prices. The allegations have reignited debates about corporate governance, the role of charismatic leaders in tech companies, and the balance between personal freedom and professional responsibility.

For now, Musk remains at the helm of both Tesla and SpaceX, but the controversy surrounding these allegations is unlikely to dissipate quickly. As more information comes to light, it may force board members, investors, and regulators to grapple with difficult questions about leadership, accountability, and the future of two of the most innovative companies in the world.