Sources: some Tesla and SpaceX directors have consumed drugs with Elon Musk feeling there is an expectation to do so, raising concerns about their independence

Wall Street Journal 2024-02-05

Context & Ripple Effects

The report extends earlier coverage that some executives and board members were already worried about Musk's drug use and its potential impact on his companies. The new element is governance: directors reportedly felt pressure to participate, putting the independence of oversight itself in question.

It also fits the broader account of drug use moving into Silicon Valley corporate culture, where conduct once treated as private can become a board-level risk when it shapes decision-making and workplace power dynamics.

First-order effects

Tesla and SpaceX boards face sharper scrutiny over whether directors can independently supervise Musk if the reported social dynamic influenced their judgment.
The allegations increase reputational and governance risk for the companies, particularly around the credibility of board oversight rather than operating performance alone.

Second-order effects

Investors and other stakeholders may press for clearer independence safeguards, more formal board processes, and directors whose standing is less tied to the chief executive.
The report raises the cost of recruiting and retaining directors at founder-led companies when private conduct can be perceived as a test of loyalty.

Third-order effects

If similar allegations recur across founder-led technology firms, board independence will increasingly be judged by behavioral and social distance from executives—not only by formal governance criteria.
The broader shift is toward treating executive conduct and board culture as linked governance risks, potentially prompting stronger expectations for documented oversight and escalation channels.

The trend: Founder-led tech companies are facing a broader test of whether formally independent boards can maintain practical independence from powerful executives.

Discussion

@lorakolodny Lora Kolodny on threads
This passage suggests a breach of fiduciary duty and lack of independence as the Tornetta decision did, too. EXCERPT: “Some board members worry about the negative effects of Musk's behavior on the six companies he oversees and the roughly $800 billion in assets held by investors…
@crumbler Casey Newton on threads
More great reporting from @kirsten.grind and the WSJ crew on Musk's drug use and how a web of money and partying among his directors makes a mockery of the idea of an independent board https://www.wsj.com/...
@lorakolodny Lora Kolodny on threads
WSJ reports: “Some current & former Tesla & SpaceX directors have knowledge of Musk's illegal drug use but haven't taken public action, according to people who witnessed the drug use or were briefed on it.” https://www.wsj.com/... “Other directors, Gracias, Jurvetson & Kimbal Mus…
@shorty_ocelot @shorty_ocelot on threads
Very ESG and Independent board! https://www.wsj.com/...
@lorakolodny Lora Kolodny on threads
begging the question how much partying is appropriate with your boss? and with people over whom you have oversight responsibilities? some, none, a ton? https://www.wsj.com/...
@bloodychill.bsky.social @bloodychill.bsky.social on bluesky
There wasn't an afterschool special to prepare us for the concept of “getting peer-pressured at work to do drugs with the boss, who is lame” [embedded post]
@danielsohn.bsky.social Daniel Sohn on bluesky
If Elon was a woman there would currently be congressional hearings about this [embedded post]
@petefrasermusic.bsky.social Pete Fraser on bluesky
It's so typically bloody 2020s puritanical that, in all the horrendous stuff this guy is responsible for ‘taking drugs with respectable rich people’ is the thing that people are trying to bring him down with. [embedded post]
@ainemacdermot.bsky.social Áine on bluesky
WSJ reports: “Other directors, Gracias, Jurvetson & Kimbal Musk, have consumed drugs with him, according to people who have witnessed the drug use and others with knowledge of it.” — 6 companies, $800B of investor money,... The wealthy stock-having people really don't seem like…
@karlisle.bsky.social @karlisle.bsky.social on bluesky
I love how the sensitive people who get upset about misgendering are the problem when there's angels infrastructures in place to make sure the richest man in the world doesn't feel uncool when he does illegal drugs at work. [embedded post]
@brendelbored.bsky.social Brendel on bluesky
This might finally be able to make drugs seem uncool to teens [embedded post]
@matthewborus.bsky.social Matthew Borus on bluesky
“Several current or former directors at Tesla and SpaceX attend parties with him, go on exotic vacations and hang out at Burning Man, the Nevada arts and music festival.” — Never has Burning Man sounded less appealing. Not even when the ex-Solicitor General live-tweeted himsel…
@dsquareddigest.bsky.social Dan Davies on bluesky
this HAS to be an issue for the space regulation people, who AIUI have been comforting themselves so far with the idea that operational control is very much removed from Musk himself. if he's encouraging others to take drugs with him, that's a problem! [embedded post]
@dslundberg.bsky.social @dslundberg.bsky.social on bluesky
Boards are supposed to be oversight of company leadership. Everything is so stupid and so fucked. [embedded post]
@mmasnick.bsky.social Mike Masnick on bluesky
Billionaire board members feeling peer pressure to take drugs with Elon because if they don't they think Musk will be angry and cut them out of his companies and life. The world is so stupid. [embedded post]
@hypercubexl.bsky.social @hypercubexl.bsky.social on bluesky
how is the government not able to pull funding or contracts from them or at least exert some pressure? I don't think NASA or blue origin are throwing ketamine parties between scattering debris all over protected wetlands [embedded post]
@nslayton.bsky.social Nicholas Slayton on bluesky
Really curious how Space Force is justifying its continued partnership with SpaceX given this and Musk's recent bout of posting conspiracy theories about immigration on Twitter. [embedded post]
@sdw Sebastiaan de With on x
crazy engineering: when the Vision Pro has a total system crash, the camera pass through keeps working (!). If it's extreme, it will prompt that you have 30 seconds before it goes dark. Insanely impressive.
@anthony @anthony on x
“In the culture Musk has created around him, some friends, including directors, feel there is an expectation to consume drugs with him because they think refraining could upset the billionaire”
@silvermanjacob Jacob Silverman on x
This is getting spicy. Latest installment of WSJ's series on Musk, drugs, money, and management. Musk did damage control for Steve Jurvetson when he was going through a sex scandal. Larry Ellison offered to let Musk sober up on his Hawaiian island. https://www.wsj.com/...
@montana_skeptic @montana_skeptic on x
“Luckily, Jurvetson, even though the company designated him an independent director, had a good friend with whom he had deep financial ties and also attended parties with, using ecstasy and LSD: Musk.” Fascinating, esp. in light of Tornetta. https://www.wsj.com/... via @WSJ
@gabehoff Gabe Hoffman on x
I mentioned Elon Musk's drug use on CNBC back in 2018, and the anchors were like woah haha ok settle down there
@silvermanjacob Jacob Silverman on x
Gotta do drugs to keep your mercurial billionaire friend/patron happy. Just gotta. [image]
@gabehoff Gabe Hoffman on x
At the upscale Austin Proper Hotel, Elon Musk has attended social gatherings in recent years with Tesla board member Joe Gebbia... where Musk took ketamine recreationally through a nasal spray bottle multiple times" https://archive.is/8o6Az
@gabehoff Gabe Hoffman on x
I've talked about Elon Musk's drug use for years before the media reported on it: https://x.com/...
@radiofreetom Tom Nichols on x
Good thing national security and clearances aren't involved | Multiple directors of Elon Musk's companies—some who have used drugs with him—have profited enormously from their deep ties to the billionaire https://www.wsj.com/... via @WSJ
@silvermanjacob Jacob Silverman on x
“The outreach came as friends and others close to Musk worried that his drug use was getting worse, and some asked him to go to rehab” https://www.wsj.com/...
@rfelliott Rebecca Elliott on x
The deep ties between Elon Musk and multiple directors of his companies—some who have used drugs with him—raise questions about the independence of those charged with overseeing the billionaire CEO. Latest w/ @KirstenGrind @EmilyGlazer @coulterjones: https://www.wsj.com/...
@wsj @wsj on x
In the culture Musk has created around him, some directors feel there is an expectation to consume drugs with him because they think refraining could upset the billionaire, who has made them a lot of money, some of the people said https://www.wsj.com/... https://www.wsj.com/...
@wsj @wsj on x
Beyond board pay, some Tesla and SpaceX directors have tens of millions of dollars in additional investments in Musk's companies. Musk, in turn, invests in some directors' companies. https://www.wsj.com/... https://www.wsj.com/...
@wsj @wsj on x
Most members of Tesla's current eight-person board have amassed shares worth hundreds of millions of dollars from their seats over the years, significantly more than what board members at other companies make for their service https://www.wsj.com/... https://www.wsj.com/...
@wsj @wsj on x
The ties raise questions among some shareholders about the independence of board members charged with overseeing Musk. A judge this week struck down his $55.8 billion Tesla pay package, saying directors who signed off on it in 2018 were beholden to Musk https://www.wsj.com/...
@wsj @wsj on x
Other directors have consumed drugs with him, according to people who have witnessed the drug use and others with knowledge of it. The volume of drug use by Musk and with board members has become concerning, some of these people said. https://www.wsj.com/...
@wsj @wsj on x
Musk and his lawyer didn't respond to requests for comment. Tesla's general counsel and a SpaceX spokesman didn't respond to requests for comment. Read the full story: https://www.wsj.com/... https://www.wsj.com/...
@wsj @wsj on x
In response to prior reporting by The Wall Street Journal about Musk's use of drugs—including LSD, cocaine, ecstasy, mushrooms and ketamine—Musk and his lawyer said that Musk has never failed a drug test at SpaceX https://www.wsj.com/... https://www.wsj.com/...
@wsj @wsj on x
Some current and former Tesla and SpaceX directors have knowledge of Musk's drug use but haven't taken public action, according to people who have witnessed the drug use or were briefed on it https://www.wsj.com/... https://www.wsj.com/...
@karaswisher Kara Swisher on x
The @WSJ isn't going to back off of this reporting and they shouldn't. Good for them for finally running down stories that have been discussed in SV for many years: The Money and Drugs That Tie Elon Musk to Some Tesla Directors https://www.wsj.com/...
@nprinskeep Steve Inskeep on x
This WSJ account leads with the drugs, but the heart of the story is reporting on how Tesla's board is stacked with people very close to the CEO they are supposed to oversee. https://www.wsj.com/...
@evanepstein Evan Epstein on x
Quite the deep dive on Tesla's board #corpgov / The Money and Drugs That Tie Elon Musk to Some Tesla Directors https://www.wsj.com/... [image]
@kirstengrind Kirsten Grind on x
Some directors at Tesla and SpaceX have known for years about Elon Musk's drug use; Larry Ellison invited Musk to his Hawaiian island to dry out. Our latest investigation @EmilyGlazer @rfelliott @coulterjones https://www.wsj.com/...
@jfleming2870 Joel Fleming on x
I look forward to @ProfRobAnderson explaining why it's actually good corporate governance to have your CEO pressuring independent directors into snorting lines with him like they're in a DARE after-school special. https://www.wsj.com/... [image]
@arifcrafiq Arif Rafiq on x
“The volume of drug use by Musk and with board members has become concerning, some of these people said.” https://www.wsj.com/...
@wsjbusiness @wsjbusiness on x
Multiple directors of Elon Musk's companies—some who have used drugs with him—have profited enormously from their deep ties to the billionaire, raising questions among shareholders about the board's independence. https://www.wsj.com/...
@moorehn Heidi N. Moore on x
The WSJ has an AMAZING story taking aim at Tesla's board for being basically corrupt and drug-addled. https://www.wsj.com/... [image]
r/elonmusk r on reddit
The Money and Drugs That Tie Elon Musk to Some Tesla Directors.
r/EnoughMuskSpam r on reddit
It's the money and drugs that tie the Tesla Board to Musk

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