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Tesla names new chair to replace Elon Musk | Tesla names new chair to replace Elon Musk |
(about 1 hour later) | |
Electric car company Tesla has appointed an executive at Australian company Telstra to chair its board. | Electric car company Tesla has appointed an executive at Australian company Telstra to chair its board. |
Robyn Denholm takes over the role from founder Elon Musk, who will remain as Tesla's chief executive. | Robyn Denholm takes over the role from founder Elon Musk, who will remain as Tesla's chief executive. |
Mr Musk agreed to give up the chairmanship last month to resolve claims of fraud brought by US financial regulators. | Mr Musk agreed to give up the chairmanship last month to resolve claims of fraud brought by US financial regulators. |
The settlement requires Tesla to install an independent chairman, among other penalties. | The settlement requires Tesla to install an independent chairman, among other penalties. |
The move scotches reports that James Murdoch might have been appointed to the job. | The move scotches reports that James Murdoch might have been appointed to the job. |
Stronger oversight | |
Tesla has endured a difficult few months, following comments on social media in early August made by the firm's founder, Elon Musk, suggesting he had "funding secured" for a deal to take Tesla private. Tesla's shares soared following his comments. | Tesla has endured a difficult few months, following comments on social media in early August made by the firm's founder, Elon Musk, suggesting he had "funding secured" for a deal to take Tesla private. Tesla's shares soared following his comments. |
Weeks later, Mr Musk backed away from the plan, citing investor feedback. | Weeks later, Mr Musk backed away from the plan, citing investor feedback. |
US authorities sued Mr Musk for misleading investors and as a result Tesla and Mr Musk were each required to pay a fine of $20m. Mr Musk was also obliged to relinquish his role as chairman for three years. | US authorities sued Mr Musk for misleading investors and as a result Tesla and Mr Musk were each required to pay a fine of $20m. Mr Musk was also obliged to relinquish his role as chairman for three years. |
Investors had also called for stronger oversight of Mr Musk after his erratic behaviour attracted attention. In media interviews he said he often slept on a sofa in the Tesla office and more recently in an online video he briefly smoked marjuana. | |
Tesla, which has never reported an annual profit, also came under strain over production schedules for its Model 3 electric car, its newest car aimed at a wider market. However, the carmaker made what Mr Musk called an "historic" profit in the most recent quarter. | |
'Extensive experience' | |
Robyn Denholm has served as a director on Tesla's board since August 2014. She has been with Australian telecoms firm Telstra since 2017 and was appointed Telstra's chief financial officer in July this year. | |
Ms Denholm will take over as chairwoman at Tesla with immediate effect and will take on the role on a full-time basis. However, she will step down temporarily from her role as chairwoman of Tesla's Audit Committee until she has worked her six-month notice period at Telstra, the company said. | |
"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," Ms Denholm said, following the appointment. | |
Before moving to Telstra, Ms Denholm, worked for Silicon Valley computing firm Sun Microsystems, Japanese car firm Toyota, consultants Arthur Anderson and, most recently, networking equipment firm Juniper Networks. | |
"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," said Mr Musk. |