According to the Wall Street Journal report on Sunday, several former and current Tesla Inc. and SpaceX board members were aware of Elon Musk's use of illegal drugs. They felt compelled to use them fearing potential consequences if they declined.

Close Ties that Could Compromise Directors' Independence

In a follow-up to a January article about Elon Musk's alleged drug use and concerns about his well-being and the company, the Journal detailed on Sunday the strong personal and financial connections between Tesla directors and Musk, including parties, vacations, and significant investments in each other's companies. People who witnessed the drug use or were briefed on it shared this information.

The Journal reports that most of Tesla's directors have earned stock options valued in the hundreds of millions, surpassing compensation for board members at other firms. The report cited corporate governance experts who suggested that such substantial ties might compromise the independence of these directors.

Previous Reports on Musk's Alleged Drug Use

Musk and his lawyer, Alex Spiro, did not reply to requests for WSJ comments. In a prior report, the WSJ mentioned Musk using LSD, cocaine, ecstasy, and psychedelic mushrooms, mostly at private gatherings. Spiro stated in that report that Musk underwent regular and random drug tests at SpaceX and never failed.

According to the report on Saturday, certain friends and directors felt compelled to use illegal drugs with Musk to avoid upsetting him, as mentioned by some individuals. They were reluctant to risk "losing the social capital" associated with being part of his circle.

Last month, Musk replied to the WSJ story about his reported drug use on X, stating, "Whatever I'm doing, I should keep doing it!" Musk mentioned Tesla and SpaceX as the world's most valuable car and space companies, noting that if drugs helped improve his net productivity over time, Elon said to take them.

READ ALSO: Elon Musk's Drug Use Concerns Executives in Businesses He Runs; Denied in Random Testing Results

The Journal mentioned that in 2022, Larry Ellison, co-founder of Oracle Corp., a friend of Musk's, and a former Tesla board member, offered his Hawaiian island for Musk to relax and detox from drug use. During that same period, other friends reportedly advised Musk to consider going to rehab.

In a series of tweets on Sunday, Musk dismissed the report, claiming that "no one has ever mentioned rehab to me ever." Board members have also not taken any public actions to address Musk's reported drug use.

Musk's $56 Billion Compensation Package

Last week, the absence of board resistance to Musk became evident when a Delaware chancery judge voided Musk's $56 billion compensation package, ruling that the board did not act independently, highlighting Musk's close connections with the directors responsible for negotiating on behalf of Tesla.

The possibility of Musk and board members using drugs raises concerns that could impact the companies, such as unpredictable, erratic behavior, potential legal violations, and the risk of exposure to blackmail. Moreover, it could violate substantial U.S. government contracts with SpaceX and impact security clearances.

Last month, NASA said it has no proof of drug use at SpaceX, as reported by Bloomberg News, and Musk's lawyer told the Journal in January that the CEO has never failed a drug test.

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