Tesla Stock Falls Amid Reports of Drug Use by CEO

Tesla’s shares experienced a decline on Monday, following a 0.5% drop to $187.9 in the previous week’s final trading session. The Wall Street Journal published a report over the weekend alleging that Tesla CEO Elon Musk had engaged in drug use with certain members of the Tesla board. While the validity of this claim remains uncertain, the report has caused concern among some individuals familiar with the situation.

Tesla was contacted for comment regarding these allegations, but no response has been received as of yet. Moreover, Musk and his lawyer have not provided any comment either, despite being approached by The Wall Street Journal.

In separate news, Musk’s pay package, which awarded him around 300 million options based on hitting performance milestones, has been voided by a ruling from a Delaware court. This decision essentially nullifies Musk’s $55.8 billion pay package and may have significant implications for the broader corporate landscape. As a result, Musk is reportedly contemplating relocating Tesla’s legal incorporation from Delaware to Texas.

Presently, Tesla’s stock is trading 1.4% lower in premarket trading on Monday, while Nasdaq Composite futures are down by 0.1%. Over the past month, Tesla’s shares have fallen by 21.9%, while the S&P 500 and Nasdaq Composite have experienced gains of 4.1% and 7.6% respectively.

It is worth noting that Tesla is significantly removed from its 52-week high of $299.29, which it reached last summer.

On Monday, Tesla’s stock performance was outpaced by that of some its competitors. Lucid rose by 1.2% to $3.35, NIO increased by 1.3% to $5.61, while BYD experienced a decline of 0.6% in Hong Kong trading. In addition, General Motors fell by 0.2% to $38.83.

At Friday’s close, Tesla’s trading volume reached 110.6 million shares, which is 6.5 million below its 65-day average volume of 117.1 million.

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