Tesla shares sink after key executives exit

Tesla shares sink after key executives exit

Tesla shares sink after key executives exit

Tesla founder Elon Musk smoked marijuana, drank whiskey and wielded a sword, all on a live-show with comedian Joe Rogan, following which shares of the electric vehicle company plummeted by 6%, on a single trading day, on Friday.

The resignation of Chief Accounting Officer Dave Morton, weeks after joining the company, has stunned investors.

On Friday, the head of Tesla's Human Resources department, Gabrielle Toledano, announced she would not return from a leave scheduled in June.

Morton, a former chief financial officer for computer-drive maker Seagate Technology Plc, joined Tesla one day before Musk tweeted that he was considering buying out some investors at US$420 a share and taking the company private.

Though Morton said "I believe strongly in Tesla", in a regulatory filing released Friday, he also noted that, "Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations". "As a result, this caused me to reconsider my future".

The puff heard around the world wasn't the only highlight from Musk's podcast experience.

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Since the news of Musk smoking a blunt went viral, Tesla's stocks have dropped by 7 percent.

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. Susan Repo, the treasurer and vice president for finance, left in March. CFO Deepak Ahuja retired in 2015, only to return previous year when his successor, Jason Wheeler, quit after just 15 months.

The forty-seven year old billionaire spent two and a half hours on a podcast late Thursday discussing everything from artificial intelligence and its impact on humankind to flame throwers and social media.

Tesla Inc's chief accounting officer resigned after just a month on Friday and a second senior executive was reported to be leaving as well, hours after chief executive officer Elon Musk smoked marijuana on a live webcast. "The company has problems, and it seems the board and investors need to start speaking up about how the company is being run". His responsibilities could include the types of things analysts have said Musk needs a COO to do in running the day-to-day operations of the company. Musk's actions are making it "harder to support Tesla as a company", even as the fundamentals are improving, Munster said. In an interview with Bloomberg Television, he called for the company to split up the chairman and CEO jobs.

Tesla reached that level in late June, but did so by working around the clock and hastily adding a third assembly line in a enormous tent outside its factory in Fremont, California - a measure that auto-manufacturing experts had never seen before.

The episode quickly added to the growing controversy over the South African-born executive's behavior in recent months and increased concerns that Musk might be using other drugs. But analysts said the sudden exit of Morton - the latest in a growing exodus of top Tesla executives - prompted new questions about the company. According to an article on NBC News, Tesla's stock has plummeted 9% since the episode aired on September 6.

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