A report from the Wall Street Journal claims that Elon Musk's use of illicit drugs has worried board members and executives from his various companies (Musk claims he is subjected to random drug testing by NASA). Elon Musk recently had a string of controversial statements and moves causing many conversations around leadership of his companies, including Tesla (TSLA) and SpaceX. Craig Irwin, ROTH MKM Senior Research Analyst, joins Yahoo Finance to discuss this latest report from the Wall Street Journal and how Elon Musk has shaped the industries he has worked in.
Irwin comments on the report : "I think this has been known to people in government for many years. I first had a conversation with someone in a relevant entity about this more than five years ago and I think that there are several other people that could have been highlighted in that article. It smells like a hit piece. 'Why now?' is the bigger question. You know, it doesn't make a lot of sense to me, given that Tesla's really executing. They're doing a phenomenal job at SpaceX. We could talk about real risks that don't have anything to do with Elon's recreational chemistry."
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
BRAD SMITH: It was a roller coaster 2023 for Tesla, from the price cuts to the launch of its much anticipated Cybertruck, but the stock still gained over 100%. A new report from the Wall Street Journal points to concerns for the company executives from Tesla and SpaceX, claiming uneasiness over Elon Musk's illegal drug use. With the EV giant gearing up to report fourth quarter earnings in the coming weeks, what are the biggest risks for investors? We've got the man, the myth, the legend himself Craig Irwin, Roth MKM senior research analyst. Great to see you here in person.
SEANA SMITH: What an intro.
BRAD SMITH: We had to give you the intro, of course, all the bells and whistles, Craig. Look, at the end of the day, when you think about this most recent overhang, of course, there have been larger questions about Musk's conduct, both inside of and outside of the company. What does this latest drudge of news really put in the throws for Tesla shareholders?
CRAIG IRWIN: Let's be brutally honest here, drugs are bad, and I'm well known for not being a fanboy. I'm not a fan of Elon Musk himself. I'm a huge fan of his success in EVs.
I think this has been known to people in government for many years. I first had a conversation with someone in a relevant entity about this more than five years ago. And I think that there are several other people that could have been highlighted in that article. It smells like hippies.
Why now, is the bigger question. It doesn't make a lot of sense to me, given that Tesla is really executing, they're doing a phenomenal job at SpaceX. And we can talk about real risks that don't have anything to do with Elon's recreational chemistry.
SEANA SMITH: But is there, though, overhang just in terms of some of that uncertainty, given the fact whether or not investors, shareholders should be looking past these recent headlines, but in terms of what that could then mean for leadership of the company down the line. How do you evaluate that as an analyst?
CRAIG IRWIN: I think Elon Musk is the key man at Tesla. He's the key man at Tesla. You can put him in one of his rockets and send him to Mars, he's still the key man of Tesla.
So he is a colorful, creative character. He is known as being a difficult, charismatic man. And I think if he leaves Tesla, we have a big problem. He's the one that basically has been the creative drive behind this company. And I give him full credit for the success of the EV industry today. I think that Musk deserves tremendous credit for the success of the industry, and the industry is inevitable now, and that would not have happened without Musk.
