Tesla Accounting Chief Quit After Elon Musk Ignored Pitfalls of Going Private

Share

The CEO of Tesla and Space X smoked marijuana toward the end of a more than two-and-half-hour live interview Thursday on comedian Joe Rogan's podcast, the Joe Rogan Experience.

"It turns out Jerome was pulling some pretty incredible rabbits out of the hat", Musk said last month on Tesla's quarterly earnings call.

Meanwhile, Tigress Financial Partners analyst Ivan Feinseth told Reuters that Musk "should not tweet about things outside of vehicle production and the auto industry".

"I've thought about this quite a lot, quite a lot", Musk said of the electric jet design, according to The Verge.

"You probably can't because of stockholders, right?"

Make no mistake, even if the base is secured, Tesla's vital swing investors are backing away.

Tesla's chief accounting officer, Dave Morton, said he was leaving after considering the level of attention Tesla has received and the "pace within the company".

Musk stunned investors a month back with tweets saying he had funding to take the company private for $420 (A$589 ) per share.

However, during an interview for The New York Times, Mr. Musk criticized the use of the drug while denying it had anything to do with attempting to take Tesla private.

More news: Ex-Trump campaign aide jailed in Russia probe
More news: Amazon unveils the new generation of Fire HD Tablets
More news: Microsoft Alters and Extends Windows and Office Servicing

The plunge in Tesla's stock comes just a day after Elon Musk expressed his support for a report estimating the U.S. sales figures for electric cars now available in the United States.

Morton, who is walking away from a $350,000 base salary and a $10 million new-hire stock grant that would vest over four years, said he believed "strongly" in Tesla and that he had no disagreements with the company's leadership or its financial reporting.

Musk has said the company is producing more than 5,000 Model 3 electric cars per week, and cash generated from the sales will bring sustained quarterly profits. It's safe to assume that members of Tesla's finance team were working overtime on issues related to the proposal during Morton's month at Tesla.

In addition, Bloomberg News reported that Tesla's head of human resources, Gaby Toledano, would not be returning from a leave of absence. Some observers have said Tesla could be helped with a strong number-two executives, but Friday's departures create additional gaps in Tesla's ranks.

The stock was down close to 1% in pre-market trade.

Meanwhile, investors were digesting a video, associated with a podcast, in which Elon Musk appeared to smoke a marijuana-tobacco combination, which is legal in California but nevertheless came as Tesla directors have expressed concern about Musk's behavior.

On the same day that the podcast was published, two executives announced their resignations from the company.

Accounting chief David Morton reportedly resigned just a month after joining the company.

Tesla did not immediately respond to a request for comment. Earlier this week Musk made a second round of unsubstantiated allegations against Vernon Unsworth, the British diver involved in the cave rescue operation that saved a group of Thai schoolboys in July, whom he had called a "pedo guy".

Share