Tesla Stock Collapses After Allegations Of Harassment Against CEO

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Tesla

Shares take a hit as investors understand allegations of sexual harassment against CEO Elon Musk.

Thursday, Business Insider mentioned That SpaceX paid the host $250,000 in 2018 to settle allegations that in 2016, Musk revealed himself to her and indicated he would pay her for sexual intercourse.

The Business Insider article said her account was based on an advertisement signed by a friend of the host that was set up as part of an allegation of misconduct, emails between the host and friend, and other records the friend shared with the post.

Business Insider interviewed the friend, but said the host declined to comment. The article said the settlement prevented the hostess from discussing the payment or disclosing any agreement about Musk or his business.

SpaceX did not respond to a request for comment, but Musk apparently denied the allegations, saying in a tweet Friday that “for the record, these wild accusations are completely untrue.” The article was also called a “successful piece” that was intended Intervention By his potential purchase of

Twitter
.

“We endorse our story, which is based on documents and interviews and speaks for itself,” a spokesperson told Business Insider. Baron It has not independently confirmed its reports.

Tesla

(TSLA) shares closed 6.4% down at $663.9, while TSLA shares closed down 6.4% at $663.9

Standard & Poor’s 500

Ended the day marginally higher. The

Nasdaq Composite

lost 0.3%.

SpaceX is privately owned. Meanwhile, Tesla fell as some investors considered The dangers of the main man— The risk that the company could be severely damaged by the loss of a single individual. Musk is perhaps the most valuable CEO of a company anywhere.

“Tesla is Elon Musk,” Roth Capital analyst Craig Irwin told Barron’s in April, shortly after Musk made a hostile bid to buy Twitter. Tesla, which does not have a public relations office, did not respond to a request for comment about its reliance on Musk and any management succession planning.

Tesla stock fell 3.9% the day Musk announced his hostile offer on Twitter. The S&P 500 fell 1.2% on the same day. At the time, investors were primarily concerned about whether seeking to buy Twitter would distract Musk as he managed Tesla, SpaceX, The Boring Company and Neuralink.

“While Twitter’s stance does not in theory affect Tesla’s underlying story, it’s hard to ignore the risks of distraction for Musk (perceiving is real).” Wedbush analyst wrote Dan Ives In a research report released Thursday, before a Business Insider article appeared. He said the deal comes “at a time when the Tesla ecosystem has never needed Musk more with the worst supply chain crisis in recent history.”

Musk tried to address concerns that he might be distracted on Friday. He said in a tweet that Twitter was following her less than 5% of his time.

With Friday’s dips, Tesla stock is now down 42% since Musk’s initial stake was revealed on Twitter in early April. The S&P 500 is down about 15% over the same period.

Write to Al Root at [email protected]