Will Elon Musk’s emails with Jeffrey Epstein derail his very important year?

The Justice Department issued it last week A collection of documents related to her case against Jeffrey Epsteinthe largest yet. Amid the millions of files, there were many references to Elon Musk. Search for the name Musk in Department database Leads to at least 1,500 visits.

Since the release, Musk has been — what else? – Posting and defending himself and his correspondence with Epstein on his social media platform, X said he had “very little correspondence” with Epstein and “rejected repeated invitations” to go to Epstein’s island. Despite the emails He showed that he had been in contact with Epstein in 2012 and 2013, and once asked him: “What day/night will be the loudest party on your island?” Epstein even offered to send a helicopter to bring Musk to the island.

It is unclear whether Musk has arrived on the island, and he has not been accused of any wrongdoing related to Epstein. But these revelations certainly contradict Musk’s previous denial of calls to “dismiss” the convicted sex offender, as do his faltering efforts at damage control now that the truth has come out.

Musk is certainly that rare CEO who seems financially immune to his many controversies. He endured Defamation claims, Wrongful death lawsuits, Allegations of sexual misconduct, Rumors of drug useAnd more – and at the same time his net worth continues to rise.

But there’s no denying that news of Epstein’s emails comes at a very inopportune time for Musk, who is currently in the middle of several highly sensitive, high-risk business moves, including a potential IPO and… Trying to integrate For at least two of his companies. SpaceX is preparing for a potential record public offering later this year. And last week, Reuters It was reported that Musk was interested in merging his rocket and communications company with XAI. (As this story was published, The merger was officially announced.)

Anne Lipton, a professor of corporate governance at the University of Colorado School of Law, said news that Musk had requested an invitation to visit Epstein’s island could “damage his image” with investors. Since much of Musk’s success rests on the optimism he generates among investors, any “dip” in that optimism could hurt his efforts to secure a historic SpaceX IPO.

“But I think the biggest risk to his companies is what we call ‘distraction costs’ — he seems to be spending a lot of time trying to refute allegations that he was involved with Epstein, and that in itself might be something investors are concerned about,” Lipton said in an email.

Musk has faced criticism about how he chooses to spend his time before. In 2022, Hundreds of SpaceX employees signed a letter Stressing that Musk’s behavior has become a source of embarrassment and distraction for the company. (At the time, the billionaire was in the middle of his failed effort to back out of his bid for Twitter.) last year, Tesla shareholders approved a trillion-dollar pay package For Musk, it was designed to lure him away from DOGE and his work in the Trump administration, and back to the electric car company.

SpaceX’s IPO poses the biggest risk to Musk right now, said Gregory Schell, a law professor and corporate governance expert at Arizona State University. The disclosure process for public offerings is extensive and subject to scrutiny by the Securities and Exchange Commission, as well as private litigants. Any misrepresentation or omission carries significant legal risk for SpaceX, and thus for Musk. But he said he could mitigate those risks by “listing an appropriate risk factor in the S-1,” including “key person risks” related to Musk himself, Schell said.

If more Epstein secrets come to light, Musk could find himself facing more serious consequences. Of course, whether someone with confirmed ties to Epstein faces any consequences for his actions often depends on which political party is in power. For example, former Treasury Secretary Larry Summers resigned from several prominent positions, Most notable is the OpenAI Board of DirectorsAfter his emails with Epstein were published. Prince Andrew has been stripped of his royal titles. Bill and Hillary Clinton currently Facing a contempt vote In Congress after they refused a subpoena to testify in a bipartisan investigation into Epstein.

Of course, Clinton’s party is out of power in Washington, while Musk’s party is in power. There are no Republican calls for Musk, a major political donor, to further explain his contacts with Epstein. The only calls are coming from inside the house, or rather from Musk’s private

It’s very rare for Musk’s controversial behavior to hurt him financially. He remains the richest man in the world, even as Tesla’s sales and profits continue to decline. Investors continue to buy and sell stock in his companies, despite his well-documented history of racist comments and conspiracy mongering. He threw a Nazi salute at Donald Trump’s inauguration – Tesla’s stock price has risen nearly 11 percent in the 12 months since that highly publicized gesture.

This controversy, like most before it, may have simply become part of the price tag at this point.

“I think without more disclosure, investors will treat it as part of the hype that comes with any investment in Musk,” Lipton said.