Tesla stock drops following a fresh executive exit and renewed scrutiny of CEO Elon Musk’s public behavior, extending a rocky stretch for the electric-car maker.
The latest departure is David Morton, Tesla Inc.’s chief accounting officer, who resigned after roughly one month in the role. The controversy centers on Musk appearing to take a puff from what looked like a marijuana joint during a wide-ranging podcast interview that circulated widely on YouTube. Shares slid more than 6 percent Friday to close at 263.24 dollars, the lowest finish since April.
The turmoil comes as Tesla works to shift from a cash-burning niche brand to a profitable, high-volume manufacturer. The company is also under government investigation and facing shareholder lawsuits tied to Musk’s August disclosure on Twitter of a plan to take Tesla private, which briefly lifted the stock. The estimated 24 billion dollar go-private proposal was later abandoned, and the share price retreated.
Tesla stock drops amid mounting challenges
Investors continue to watch whether Tesla can sustain production and margins while managing leadership turnover and legal risk. The recent sell-off underscores how reputational flare-ups and governance questions can quickly feed into market volatility, a concern for many Hawaii-based investors with exposure to tech and auto sectors.
The company’s governance issues have drawn the attention of federal regulators and market-watchers alike, with some analysts comparing Tesla’s communications challenges to those faced by other high-profile firms such as Amazon. For now, traders remain focused on whether the company can hit its production targets and avoid further high-level departures.
Whole Foods workers aim to unionize
Separately, employees at Whole Foods Market are organizing a union effort seeking higher pay and improved benefits, saying workplace conditions have deteriorated since Amazon acquired the grocer last year.
In an email to staff Thursday, organizers said layoffs and store consolidations had put jobs at risk, with more possible. The group’s proposals include a 15 dollar per hour minimum wage, stronger retirement benefits, paid maternity leave, and lower health insurance costs, among other improvements.
The organizing push comes as labor groups across the country intensify campaigns at major retailers and tech companies, and as policymakers weigh proposals to raise minimum wages in high-cost states such as Hawaii. For more on how large employers shape the islands’ economy and workforce, see Hawaiian Airlines Boston nonstop service launches in April.
Whole Foods workers have also cited rising living costs in many of the urban neighborhoods where the grocer operates, arguing that stagnant wages have made it harder to keep up with rent, transportation, and food expenses. The company, which is owned by Amazon, has said it offers competitive pay and benefits and has not yet commented publicly on the unionization effort.
