Tesla shares fell more than 6 percent on Friday, after top executives resigned and CEO Elon Musk appeared to smoke pot in a video.

It wouldn't be the first time that investors were rattled by Musk's unconventional ways, sending stocks haywire.

Musk, 47, appeared on The Joe Rogan Experience on Thursday night. Over 2 1/2 hours, Musk discussed technology, unsheathed a sword and accepted what Rogan, a stand-up comedian, described as marijuana inside of tobacco.

"You probably can't because of stockholders, right?" Rogan said.

"I mean it's legal, right?" Musk said before smoking the joint. They were sitting inside a studio in California, where medical and recreational marijuana use is indeed legal.

News of the resignation of Tesla Chief Accounting Officer Dave Morton came Friday, according to a securities filing. Morton stated that "the level of public attention placed on the company" and "the pace within the company" caused him to reconsider his future. He added that he still believed in Tesla, saying, "I have no disagreements with Tesla's leadership or its financial reporting."

Morton had been on the job for about a month, starting one day before Musk announced on Twitter that he was considering taking the electric car company private. The tweet made stocks soar.

At $420 a share, some people wondered whether the number was meant to reference marijuana culture. ("I was not on weed, to be clear," he told The New York Times. "Weed is not helpful for productivity. There's a reason for the word 'stoned.' You just sit there like a stone on weed.")

Gaby Toledano, Tesla's head of human resources, also said she was leaving the company on Friday. She had been on leave for a few months to be with her family, Tesla wrote in a blog post.

The departure of top executives has prompted scrutiny. Since the start of the year, 41 executives have left, according to CNBC.

Tesla did not immediately respond to NPR's request for comment.

The spring and summer were full of drama for Musk, as he tussled in person and online with analysts, short-sellers and a British diver who helped rescue a team of boys trapped in a cave in Thailand.

Musk offered a frank and vulnerable look into his life for The New York Times in August, describing his long hours, isolation and how he took Ambien for sleep. According to the report, board members were concerned that the drug doesn't work for him sometimes and "instead contributes to late-night Twitter sessions." As for recreational drugs, he has used them "on occasion," sources said.

Other entrepreneurs have used marijuana, including the late Steve Jobs and George Zimmer, founder of Men's Wearhouse. Virgin Group founder Richard Branson reportedly encouraged parents to smoke joints with their children.

Several media outlets incorrectly reported that the U.S. Air Force was reviewing Musk's security clearance after the video of him smoking was published online, because his company SpaceX provides services to the government, Reuters reported.

"Do people want privacy?" Musk asked Rogan in the video. "Because they seem to put everything on the Internet, practically." </s> Another executive departure, another controversy over the CEO’s behaviour, another stock drop.

Another typical day at Tesla.

Although the details change, the pattern stays the same. This time, the executive departure is David Morton, chief accounting officer at Tesla Inc., who called it quits after just a month on the job. The controversy is over Elon Musk taking a hit off an apparent marijuana-tobacco joint during a podcast interview that made its rounds on YouTube. And the stock dropped more than six per cent Friday to close at $263.24 a share — its lowest point since April.

READ MORE: Elon Musk smokes marijuana on Joe Rogan’s podcast

All of it comes as the electric automaker continues to struggle to convert itself from a money-losing boutique to a mass-production profit machine. It’s doing so while under investigation by the government and facing shareholder lawsuits after Musk revealed a plan to take the company private on Twitter, boosting the share price. The estimated $24 billion plan eventually was scrapped and the stock fell.

Tesla only has a few weeks left to deliver on Musk’s promise to post sustained profits starting in the third quarter after losing more than $700 million in the second quarter. Moody’s Investor Service downgraded the company’s debt into junk territory back in March, warning that Tesla won’t have cash to cover $3.7 billion for normal operations, capital expenses and debt that comes due early next year. Tesla has said cash from producing more Model 3 mass-market electric cars will pay the bills and drive profits.

Amid the mounting pressure, Musk must now dig himself out of a fresh controversy of his own making. About two hours into the YouTube video of “The Joe Rogan Experience,” the CEO accepts a sip of whiskey and a drag off a joint offered to him by Rogan, a comedian and podcast host who makes it a point to note that pot is legal in California.

WATCH: Is it time for Elon Musk to step away from Tesla?

Shortly after smoking, Musk — dressed in a black T-shirt that says “Occupy Mars” — looks at his phone and laughs, telling Rogan he is getting texts from friends asking why he’s smoking weed during the interview. Later, Musk says he doesn’t notice any effect from the joint.

“I’m not a regular smoker of weed,” he says. When Rogan asks how often he smokes it, Musk replies: “Almost never.” He knows a lot of people like weed, but “I don’t find that it is very good for productivity,” he tells Rogan.

Meanwhile, the company announced in a regulatory filing the departure of Morton, who is quoted by Tesla as stepping down due to the level of public scrutiny and the pace at the company but not over any disagreements with Tesla’s leadership or its financial reporting. This followed a report by Bloomberg on Friday that Gabrielle Toledano, head of human resources, would not return to Tesla after a leave of absence. And communications chief Sarah O’Brien confirmed to The Associated Press that her last day on the job was Wednesday. She wouldn’t give a reason for her departure, which she said has been in the works for two months.

READ MORE: Elon Musk facing libel lawsuit from British rescue diver who he called a ‘pedo’

Late Friday, replacements were named for Toledano and O’Brien, and Musk also promoted Vice President Jerome Guillen to president for automotive, overseeing all auto operations including the parts supply chain. He’ll report directly to Musk, the CEO said in a note to employees.

Paul Argenti, a Dartmouth College professor of corporate communication, said the latest controversy is not surprising.

“The behaviour on YouTube is obviously in line with what we’ve seen in the past,” he said. But, he added, “You can’t go on like that forever. It catches up with you.”

WATCH: Elon Musk says past year has been ‘excruciating’ as he mulls taking Tesla private

Musk’s conduct has been questionable since the first-quarter earnings conference call when he criticized Wall Street analysts for asking “bonehead” questions about the company’s finances. Then he labeled a British diver who aided in the cave rescue of Thai soccer players a pedophile, and after apologizing, doubled-down on his accusation again this week in emails to Buzzfeed News.

But the most questionable action came when Musk tweeted Aug. 7 that he had secured funding to take the company private at $420 per share to get away from the short-term pressure of Wall Street. The tweets pushed the electric vehicle and solar panel maker’s stock price up 11 percent that day. But it subsequently fell when Musk revealed that funding wasn’t locked down.

On Aug. 24 Musk put out a statement saying the go-private deal was off, drawing scrutiny from the Securities and Exchange Commission.

Some analysts and investors have called on the board to replace Musk as CEO but keep him as chief product officer, or hiring a chief operating officer to handle daily operations. Messages were left Friday with board members, including lead director Antonio Gracias. </s> Tesla stock falls as the CEO visits the popular podcast, which was filmed and on YouTube.

Shares of electric car maker Tesla Inc. fell more than 6 percent early Friday after CEO Elon Musk appeared to smoke marijuana during an interview, and the company's accounting chief left after a month on the job.

Musk appeared on The Joe Rogan Experience overnight. About two hours into the podcast, which can be seen on YouTube, Musk inhales from what the host says is a combined marijuana-tobacco joint, which Rogan notes is legal. Rogan passes the joint to Musk, who also takes a sip of whiskey.

Shortly after smoking, Musk looks at his phone and laughs, telling Rogan he was getting texts from friends asking why he was smoking weed during the interview. Later Musk says he doesn't notice any effect from the joint, which he claims he rarely smokes.

As the video gained traction, more news hit: Early Friday, the Palo Alto, California, company announced that Chief Accounting Officer Dave Morton resigned after a month on the job, citing public attention and the fast pace of the post.

The company disclosed the departure in a regulatory filing.

"Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations," the company quoted Morton as saying in the filing with the U.S. Securities and Exchange Commission. "As a result, this caused me to reconsider my future. I want to be clear that I believe strongly in Tesla, its mission, and its future prospects, and I have no disagreements with Tesla's leadership or its financial reporting," Morton was quoted as saying.

Tesla is under extreme pressure to turn a sustained net profit starting this quarter, as promised by Musk. But in the second quarter it burned through $739.5 million in cash and lost a quarterly record $717.5 million.

Musk has said the company is producing more than 5,000 Model 3 electric cars per week, and cash generated from the sales will bring sustained quarterly profits. The Model 3 starts at $35,000, although the cheapest one that can be purchased at present costs $49,000.

Moody's Investor Service downgraded Tesla's debt into junk territory back in March, warning that Tesla won't have cash to cover $3.7 billion for normal operations, capital expenses and debt that comes due early next year. Tesla said cash from Model 3 sales will pay the bills and drive profits.

The company said its accounting functions will be overseen by the chief financial officer and corporate controller. Morton's resignation is effective immediately.

Watch Musk's visit on The Joe Rogan Experience below. </s> The Millennial equivalent of the moon landing? Social media reacts to Elon Musk on 'Joe Rogan'

Though Tesla shareholders didn't seem to love Elon Musk's interview with Joe Rogan Thursday night (judging by a 10-percent plunge in Tesla shares on Friday), the internet couldn't get enough of it.

Musk spent a whopping 2.5 hours on "The Joe Rogan Experience," discussing everything from flamethrowers to the end of the universe. You can watch the interview here.

READ ALSO: Tesla stock take a hit after Elon Musk appears to smoke weed

Despite the high-minded back-and-forth, most viewers seemed to hone in on one particular moment: Musk taking a puff from what Rogan claimed to be a marijuana joint. Note: It is legal to consume marijuana recreationally in California, where the interview was conducted.

One Twitter user called the moment the Millennial equivalent of the moon landing. Another said the blunt-smoking was such a powerful image, it "broke the simulation."

Others were more cynical. "No one has ever made smoking anything look less cool than Elon Musk," tweeted Linette Lopez.

Recode Editor-At-Large Kara Swisher characterized the stunt as a misstep. "They've got to get a CEO, who's obviously visionary, to focus and stop doing all these antics like writing emails or smoking pot on a podcast," she told CNBC. "It's great for us in the media, but it's not really good for the shareholders."

READ ALSO: Tesla erupts in chaos after senior execs leave

Tesla shares fell as much as 10 percent to $252.25 as of Friday morning, in the same week that two senior Tesla executives announced their departure from the company.

Musk, in the interview, noted, ""It's quite hard to run companies. Especially car companies. It's very difficult to keep a car company alive."

Read more reactions in the above gallery. Have thoughts on the interview? Share them in the comments section.

Read Michelle Robertson's latest stories and send her news tips at mrobertson@sfchronicle.com.

Start receiving breaking news emails on wildfires, civil emergencies, riots, national breaking news, Amber Alerts, weather emergencies, and other critical events with the SFGATE breaking news email. Click here to make sure you get the news. </s> Real-life Tony Stark figure Elon Musk, the CEO of Tesla, followed his free spirit last night by getting a little high on comedian Joe Rogan's podcast.

Rogan pulled out a joint in the middle of the interview, leading Musk to wonder if it was a tobacco cigar or cannabis. Rogan confirmed it was the latter. At one point, Musk inhaled, exhaled, and shrugged the experience off before picking up a glass of whiskey and observing that alcohol is a drug that's "been grandfathered in."

Following Musk's interview with Rogan, as well as the recent resignation of a chief accounting officer, Tesla stock dropped 9 percent.

The moment was rather interesting considering some comments Musk made about marijuana and productivity just a few weeks prior. As noted, Musk once tweeted that he was considering selling shares of his company for $420. As you probably know, the number 420 is popularly associated with smoking pot.

When The New York Times asked Musk if he was smoking when he made the tweet, Musk replied, "Weed is not helpful for productivity. There's a reason for the word 'stoned.' You just sit there like a stone on weed." As for the figure, Musk said that $420 "seemed like better karma" than $419.

Those with over two and a half hours to spare can watch the full interview below. The hotbox begins at 2:09:05. </s> Elon Musk embraced the chill vibes set forth by Joe Rogan and smoked a blunt on the comedian’s podcast on Thursday night.

“Is that a joint? Or is it a cigar?” asked the Tesla CEO before “The Joe Rogan Experience” host indicated it was marijuana inside tobacco.

Upon Rogan asking if he’s ever had it, Musk says that he thinks he “tried one once” before Rogan teases: “Come on, man. You probably can’t because of stockholders, right?”

Musk then bends and says, “I mean it’s legal, right?” before taking a drag. (The show is recorded in California.) You can watch the whole exchange below:

The moment has already sent the internet into a tailspin, with Rogan himself steering the masses towards memes:

Here’s what others are saying:

anyway i, like all of you, am truly shocked that elon musk doesn't vape — Anne T. Donahue (@annetdonahue) September 7, 2018

Hey if you’re wondering what it would look like if Principal Skinner got Stockholm syndrome after being taken hostage by a UFC fighter, check out Elon Musk on Joe Rogan — Dan O'Sullivan (@Bro_Pair) September 7, 2018

Dear East Coast Twitter;



I know it is the middle of the night, but when you wake up, you will wake up to Elon Musk hitting a blunt, and this is the best gift I think you can get. — Emily G (@EmilyGorcenski) September 7, 2018

Why do all white men over 30 make this face when they smoke weed pic.twitter.com/vOirswfkMe — Myles Tanzer (@mylestanzer) September 7, 2018

You: Good CEOs aren't worth millions of dollars.

Also you, probably: Hey, Elon Musk smoking weed is going to wipe BILLIONS off Tesla's market cap! — Sam Bowman (@s8mb) September 7, 2018

Outside of the reefer madness, the duo chatted about everything from China to humanity to artificial intelligence in the two-and-a-half-hour podcast.

There’s even a moment with a Samurai sword that leads this reporter to believe that the simulation we just might be living in is officially on the fritz: </s> Tesla CEO Elon Musk said Friday that the company would continue to be publicly traded, weeks after suggesting that he would take the pioneering electric carmaker private.



Musk met Tesla´s board of directors on Thursday "and let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree," he wrote on the company blog.

Musk surprised markets on August 7 by announcing on Twitter he wanted to take Tesla private at $420 a share. But the shares have fallen more than 20 per cent since.

After the announcement the controversial entrepreneur came under extensive scrutiny over his Twitter statements related to the proposal, especially a claim that Tesla had 'secured' funding for the move.

Tesla shares tumbled on reports that the US Securities and Exchange Commission has subpoenaed Musk to talk about the tweet.

Normally such a major announcement — taking a huge company private — would be explained in detail beforehand to regulators.

Musk said Friday that based on his talks with shareholders, as well as an assessment by financial advisers Silver Lake, Goldman Sachs and Morgan Stanley, "it´s apparent that most of Tesla´s existing shareholders believe we are better off as a public company."

Even though the majority of shareholders "said they would remain with Tesla if we went private, the sentiment, in a nutshell, was ´please don´t do this,´" he wrote.

"I knew the process of going private would be challenging, but it´s clear that it would be even more time-consuming and distracting than initially anticipated."

Musk wrote that the company "must stay focused on ramping (up the) Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable."

The Model 3 is a $35,000 mid-sized electric sedan that the company — which still has not made a profit — is banking will be its runaway hit.

Musk acknowledged that he was exhausted from overwork following the market-rattling August 7 tweet.

"This past year has been the most difficult and painful year of my career," Musk told the New York Times in an August 16 interview.

The newspaper said the swashbuckling CEO choked up at times as he talked about working endless hours trying to meet production deadlines, spending his 47th birthday in June — every hour of it — at work and almost missing his brother´s wedding.

The physical toll his job is taking meant life has "not been great, actually. I´ve had friends come by who are really concerned," he told the newspaper.

Musk described the infamous privatisation tweet — which included an assurance that funding for going private was secured — as an attempt to be transparent.

The news shocked investors, market analysts and even Tesla board members.

Musk explained on the company blog that his much scrutinized statements about financing were based on his conversations with Saudi Arabia´s sovereign wealth fund and other investors. </s> Tesla CEO Elon Musk will give up his position as chairman of the company’s board and pay a $20 million fine to settle a fraud complaint with the U.S. Securities and Exchange Commission, the agency announced Saturday.

The SEC sued Musk on Thursday for misleading investors when he tweeted that he had secured financing to take the electric car maker private. Musk had earlier vowed to fight, and the SEC had sought his dismissal as CEO.

Tesla will also pay $20 million to settle a charge that, when it came to Musk’s tweets, the company failed to have required disclosure controls and procedures in place.

According to the SEC, Musk’s statements “falsely indicated that, should he so choose, it was virtually certain that he could take Tesla private at a purchase price that reflected a substantial premium over Tesla stock’s then-current share price, that funding for this multi-billion dollar transaction had been secured, and that the only contingency was a shareholder vote.”

Musk’s tweets caused the company’s stock price to jump by more than six percent on Aug. 7 and prompted significant market disruption, the SEC alleged.

“Neither celebrity status, nor reputation as a technological innovator, provide an exemption from the federal securities laws,” said Stephanie Avakian, co-director of enforcement for the SEC, during a press conference Thursday announcing the charges.

Under the terms of the agreement, Musk will remain the company’s chief executive but step down as chairman within 45 days. Musk will not be eligible to be chair for three years.

Tesla will name two new independent board directors and put controls and procedures in place to oversee Musk’s communication, the SEC said in a news release.

The combined $40 million in settlement money will be distributed to investors who have been harmed, according to the release. </s> Tesla will remain a public company, CEO Elon Musk said Friday night, less than three weeks after he announced to the world via Twitter that he was considering taking the electric automaker private at $420 a share.

Musk, who posted the announcement via Tesla’s blog, said Friday that after speaking with shareholders and investigating the process of taking the company private he believes the better path is for Tesla to remain public. Musk met with Tesla’s board of directors Thursday and told him his decision. The board agreed, he wrote.

Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company. Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private. Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was “please don’t do this.” I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable. That said, my belief that there is more than enough funding to take Tesla private was reinforced during this process.

Friday night’s announcement closes a tumultuous 17 days that began with Musk tweeting that he secured funding and was considering taking Tesla private. The tweet wasn’t warmly embraced by the Tesla board or many shareholders. It also prompted the U.S. Securities and Exchange Commission to investigate.

While this 17-day ride might be over, the questions over Musk’s behavior (and possible drug use) and the company’s future are likely not.
Tesla stock drops 9% the day after CEO Elon Musk was seen drinking whiskey and smoking cannabis in California while discussing space colonization, life after the technological singularity and whether reality is a simulation on The Joe Rogan Experience, and two executives resign.