Tesla shares down after Musk was filmed smoking weed

Tesla shares down after Musk was filmed smoking weed

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Elon Musk smokes weed on Joe Rogan

Tesla Inc. shares plummeted more than 6 percent on Friday after CEO Elon Musk was recorded smoking marijuana on a webcast coupled with the news that recently appointed Chief Accounting Officer Dave Morton has decided to leave the company.

The Palo Alto, California-based automaker said in a filing that Morton was not comfortable with the attention on Tesla and pace of work during his brief tenure.

The company also announced that Chief People Officer Gaby Toledano, who is currently on leave, would not rejoin his duties. Toledano spent just over a year with Tesla.

The latest departures come shortly after SEC opened an investigation into Musk’s abandoned privatization plan. Morton and Toledano join several senior executives who have left the company.

Separately, Tesla named its eight-year old employee Jerome Guillen as its new president of automotive operations. He will now oversee all automotive operations and report directly to Musk. The company also announced several other promotions following management discussions.

Morton said in the filing that the level of public attention placed on Tesla, beside the pace within the company exceeded his expectations, therefore he has decided to reconsider his future.

On Thursday, Musk was shot drinking whiskey and smoking marijuana during a live Web show with stand-up comedian Joe Rogan that went viral on social networks. However, Musk said he is not a regular smoker of weed.

It was the latest in a series of unconventional behavior by Musk.

Tesla expects to turn a profit in the second half of 2018. The forecast was recently reiterated by the head of investor relations, Martin Viecha.

Viecha also indicated that Tesla’s working capital will improve with the rise in production. The company expects to build 50,000 to 55,000 units of its Model 3 sedans in the current quarter.

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