Musk sued over plan to take Tesla private

Muriel Colon
September 10, 2018

Rogan's podcast is known for being choppy and focused on a wide array of topics, but Musk's appearance was particularly wild, as the two went from discussing ancient weaponry to talking about the CEO's new electric plane design.

Securities and Exchange Commission filings released Friday revealed Tesla's chief accountant, Dave Morton left the company just one month after he arrived, and Toledano's departure, which was announced after she took leave from the company, comes after Ganesh Srivats, a top sales executive at the company, left under similar circumstances. Within an hour of Morton's exit being confirmed, Toledano said she would not return from a leave of absence. The show took place in California, where recreational marijuana consumption is legal.

Tesla shares fell as much as 10% on Friday, rebounding slightly to $265 per share in after hours trading.

At one point, Musk and Rogan shared a spliff, though Musk said doesn't make a habit of smoking weed, which he called "a cup of coffee in reverse". But Musk also said this isn't really a priority, and he also dismissed the concept of a flying vehicle as impractical.

Some observers have said Tesla could be helped with a strong number-two executive, but Friday's departures create additional gaps in Tesla's ranks.

Nonetheless, Tesla shareholders were not amused to see yet another impulsive act from the CEO, and shares dropped by 9% before closing down 6%.

Prominent short-seller Andrew Left has sued Tesla and Musk, saying in his proposed class-action complaint on Thursday that Musk's issuance of materially false and misleading information related to his abandoned plan harmed both short-sellers and those hoping the stock would rise.


The talk starts off with a casual conversation about Boring Co's "not a flamethrower" and Musk's time-management challenges.

The two lawsuits were filed three days after Mr Musk announced on Twitter that planned to take Tesla private in a record $72bn (£56bn) transaction.

Musk admitted on "The Joe Rogan Experience" that running a company like Tesla is intense and tricky, saying, "It's very hard to keep a auto company alive".

The latest drop in Tesla's stock has caused Consumer Edge analyst James Albertine to call for the company to appoint another senior leader to support Elon Musk.

The circumstances surrounding the go-private, no-go-private episode have reportedly drawn heightened scrutiny from SEC investigators.

He said: I think the future in where we are a space-faring civilisation out there among the stars, that is very exciting.

But a large portion of that gravitational potential energy could be recaptured and harvested on the descent, Musk said. He added that he still believed in Tesla, that "I have no disagreements with Tesla's leadership or its financial reporting".

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