The “use of illegal drugs” by billionaire Elon Musk was known to some serving and former directors of at least two of his firms — Tesla and SpaceX, according to the Wall Street Journal. Even though there is a sense of concern among the board members of Musk’s entities, they have failed to initiate an investigation on the issue, the report further said.
The WSJ report, while reporting that the boards of Tesla and SpaceX failed to take any public action despite some of its members being aware of Musk’s alleged drug use, pointed towards the money ties between him and a number of directors.
Among the current and former directors on the boards of Tesla, Musk has invested in the entities linked to venture capitalists Antonio Gracias, Ira Ehrenpreis, tech magnet Larry Ellison and former media executive James Murdoch. They, in turn, have invested in companies linked to Musk and his brother Kimbal Musk, the report pointed out.
Apart from the financial ties, Musk is also credited for giving career support to some of them. The most prominent example is Steve Jurvetson, who stepped down from his firm DFJ Venture Capital in 2017 after being accused of sexual harassment. Despite the allegations gaining media glare, Tesla retained him as an independent director till he resigned on his own accord in 2020.
The report also highlighted that the remuneration which Tesla provides to its shareholders is steeply higher than the national average. According to the National Association of Corporate Directors, the average compensation drawn by board members among America’s 200 largest companies stood at $329,351 in 2023.
In comparison, Tesla’s current board members have drawn an average annual compensation of about $475,000 since 2015 and hold stock valued at about $8 million, according to the report.
Musk’s alleged drug use
In January, WSJ cited sources to claim that Musk has been using drugs such as cocaine, ecstasy, LSD and magic mushrooms. Musk has been using ketamine, a drug which he obtained by prescription, for recreational purposes during his visit to Austin Proper Hotel in recent years, according to ESJ. Gracias and Jurvetson, present directors on the boards of Tesla and SpaceX, respectively, also consumed drugs with him, the publication learnt from people with direct knowledge of the matter.
The business magnate also attended a party in the Hollywood Hills in late 2022, where he consumed a liquid form of ecstasy from a water bottle, one of the persons who was present there told WSJ. Before he took the drug, Musk’s security team asked people to leave the floor for his privacy, the report stated.
Concerns for Musk’s companies
Musk’s alleged drug use poses a risk to the six companies he oversees, in which an estimated $800 billion is held by investors. Some of the board members are concerned about the potential harm it could cause, the WSJ report said.
The alleged use of illegal narcotics might hurt SpaceX’s federal contracts leading to the revocation of Musk’s security clearances, apart from violating the strict anti-drug policies enacted by his own companies.
Some of Musk’s friends and those close to him have asked him to undergo rehab, the people privy to the matter told the publication, adding that they fear that his condition may get worse.
Musk’s response
The Tesla and SpaceX chief was yet to respond to the latest WSJ report. While reacting to the publication’s article released last month, he said he has been undergoing drug tests since 2018. “Not even trace quantities were found of any drugs or alcohol. @WSJ is not fit to line a parrot cage for bird,” he had posted on social media platform X, which he bought in October 2022.
“If drugs actually helped improve my net productivity over time, I would definitely take them!” Musk had added.