08 Nov 2018
Tesla names new chair to replace Elon Musk
Electric car company Tesla has announced that their board member Robyn Denholm will be replacing Elon Musk as the company’s chair. This is almost a month after Mr Musk had to step down from his position of chairman, as part of a settlement with U.S. regulators.
In the deal with the U.S. Securities and Exchange Commission, the company had until 13 November to name an independent board chairman, however, they agreed that Elon Musk could retain his position as CEO. This was after the billionaire posted fraudulent tweets about taking the company private.
During the month of August, Musk had said he was considering taking Tesla private in a $420 a share, he also mentioned having secured funding for a deal that was later scuttled. All this resulted in scrutiny from various government agencies.
The appointment of Denholm has calmed months of turbulence for the company and its stocks.
Following Mr Musk’s behaviour, investors have also called for stronger oversight of the CEO, following his recent behaviour on social media, which has attracted the attention of many.
Tesla has never reported an annual profit and has come into further strain over its latest production of their Model 3 electric car, aimed at the wider market.
Robyn Denholm, the new chair of Tesla has served as director on the company board since August 2014, and also been with Australian telecoms firm Telstra since 2017. Following her appointment, she commented:
“I believe in this company, I believe in its mission and I look forward to helping Elon and the Tesla team achieve sustainable profitability and drive long-term shareholder value.”
Elon Musk said:
“Robyn has extensive experience in both the tech and auto industries, and she has made significant contributions as a Tesla Board member over the past four years in helping us become a profitable company.”