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The board members of the electric car manufacturing company, Tesla, owned by Elon Musk, are faced with a dilemma. Investor Steve Juverston, a director for many years with others, had left the company after an internal investigation revealed his libertine life with many women in the technology sector, as well as illegal drug use.
After the first details emerged in 2017, many board members had asked him to step down. Fortunately for him, Juverston had a good and powerful friend who had close financial ties to him and attended parties with him using ecstasy and lsd. He is Elon Musk.
In reserved meetings, Musk persuaded advisers to allow him to take a long sabbatical and then resign himself in 2020. In the end, he remained on the management team of SpaceX, the rocket company also owned by Musk. . When asked how the board had handled the case, Antonio Gracias, another former Tesla executive and good friend of Musk, said during court testimony in 2021: "There was no reaction at all, we just waited to see how it would go." Gracias is estimated to have invested $1.5 billion in Musk's companies. Many other directors at Musk's companies have very close financial and friendly relationships with him. And they have made huge profits from these relationships. Last Tuesday, a judge in Delaware voided Musk's multibillion-dollar pay package at Tesla, claiming that the board members who authorized that package in 2018 were in debt to him.
Many executives or former executives of Tesla and SpaceX go to parties with him, go on vacation to exotic places, participate in the annual "Burning Man" festival in Nevada. Musk and these executives — among them investors like Gracias and Ira Ehrenpreis, techno guru Larry Ellison, former media executive James Murdoch, and his own brother Kimbal Musk — have invested tens of millions of dollars in each other's companies. Some of them have also received support to make a career from Musk.
According to several people who were present while he was using banned substances, some prominent managers of Tesla and SpaceX are aware of his habits but have done nothing.
In January, the Wall Street Journal wrote that Musk consumes drugs, including cocaine, ecstasy and lsd, and hallucinogenic mushrooms, and for the executives of Tesla and SpaceX the situation has become worrying, especially when it comes to the consumption of ketamine, which he says he has medical recipe.
In the culture that Musk has created around himself, some friends including executives, or former executives, have the impression that he expects them to consume, and if they don't they will see him go against them. For some of them, this is almost like feeling like friends of a king. Musk and his legal representative, Alex Spiro, did not respond to reporters' requests for comment. Spiro stated that Musk periodically undergoes drug tests. Musk himself wrote such a clarification on X, adding that "if I really needed drugs to increase productivity on time, I would definitely take them."
Some board leaders are concerned about the ramifications Musk's behavior would have on the companies he runs and the nearly $800 billion in investor assets. But despite the concerns, Tesla's board did not investigate.
In the winter of 2022, Larry Ellison, Musk's friend and former Tesla executive, invited him to his Hawaiian island to relax and detox. A year earlier, Ellison had met Musk at an auto industry party in Miami. Then, when he proposed, they were at a party in the Hollywood Hills, where Musk took liquid ecstasy from a water bottle he was holding. According to those who were present, initially Musk's bodyguards had removed everyone from the hall, to have a little more privacy.
Over the years, Tesla Board members have received hundreds of millions of dollars for the armchairs they sit on, much more than the average in companies that are on the stock exchange... (bota.al)
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