No one has ever mistaken me for a business writer. Show me a balance sheet or quarterly report, and my eyes will glaze over. Bring up “chasing alpha” at the bar, and I’ll ask for the check and give you the old Irish goodbye. Business chatter—the kind you can’t help but overhear from young stockjobbers at the gym and bloaty middle managers on the Acela—bores me to tears. I’m especially allergic to the idea of “The Market” as an autonomous, anthropomorphic entity with a unitary will and mind of its own.
But even I can tell you that Elon Musk is imploding.
The latest omen came Friday when footage of the South African-born magnate smoking a fat marijuana blunt dropped online. The video is worth watching; the Guardian has the key bits from the 150-minute interview (do people really watch interviews this long?).
Rogan, whose fame has been a mystery to many yet is an inescapable fact of our online lives, offers the joint to Musk but is quick to add: “You probably can’t [smoke it] because of stockholders, right?” (On second thought, I think I know why Rogan is famous—because he knows how to push his subjects’ buttons.)
“I mean it’s legal, right?” Musk replies.
And so Elon Musk—the founder of an electric-car company worth $50 billion and a rocket company worth $20 billion—presses the blunt between his lips and takes a drag. He washes it down with a sip of whiskey on the rocks.
“I’m not a regular smoker of weed,” Musk says a few minutes later. “I almost never [smoke it]. I mean, it’s it’s—I don’t actually notice any effect.” His speech by now is noticeably more halting than it has been earlier in the interview. “I know a lot of people like weed, and that’s fine. But I don’t find that it is very good for productivity.”
The Market was not amused. News of two senior Tesla executives quitting their jobs broke soon after the interview appeared. Tesla shares slid 8 percent. On Twitter, where he competes with President Trump for the World Megalomaniac Award, Musk tweeted out his Rogan interview, adding: “I am a business magnet.” Perhaps he was still coming down.
These disasters follow the summer’s going-private fiasco. In early August, Musk claimed he had secured the vast funding needed to take his company private and then did a switcheroo. Tesla short-sellers, whom Musk constantly tries to show up, were vindicated. The Market got angry; shares slid.
“Moving forward, we will continue to focus on what matters most,” Musk wrote in a statement to investors two weeks later, “building products that people love and that make a difference to the shared future of life on Earth. We’ve shown that we can make great sustainable energy products, and we now need to show that we can be sustainably profitable.”
That apparently entails shooting the THC-laden breeze with Joe Rogan for two and a half hours.
The question now is: How did Musk ever get so big in the first place? There were many Tesla-skeptics, of course, chief among them those very short-sellers. They were onto something, perhaps because they sensed that a sound inventor-investor-executive would be more concerned with producing a reliable, profitable, non-subsidized automobile than with . . . showing up short-sellers. Even so, Tesla shares climbed and climbed. Even now, after Friday’s Harold and Kumar routine, the stock is trading north of $260.
Two explanations come to mind. The first is that, after Steve Jobs’s death, Wall Street and Silicon Valley types were seeking the next Eccentric Visionary to whom they could hitch their dreams. And Musk was straight out of central casting for Eccentric Visionary. Ending climate change. Colonizing Mars. Super-trains linking cities across vast distances. Everything seemed possible with him. Who knows, maybe the hopes were well-placed at one point, and the adulation went to the man’s head?
The second explanation, which needn’t be mutually exclusive with the first, is ideology. So much of Musk’s business reputation rested on his claims of solving climate change and other planetary crises that loom large in the minds of the Davos crowd. Musk embodied the ideological proposition that no modern problem eludes solution by noble-minded technocratic elites. The Market, it turns out, was as prone to magical thinking as any of the rest of us.
Clarification: News of the Tesla executives’ departure broke following Musk’s pot-smoking interview, but at least one of the departures had been finalized earlier this week.