Published: Thu, November 08, 2018
Economy | By

Elon Musk replaced as Tesla chair

Elon Musk replaced as Tesla chair

The settlement requires Tesla to install an independent chairman, among other penalties.

The settlement required Tesla and Mr Musk to pay a fine of $20 million each and for Mr Musk to give up his chairman role for three years.

Denholm is now chief financial officer at Australian telecoms operator Telstra Corp Ltd and has been an independent director on Tesla's board since 2014.

The announcement scotches reports that James Murdoch was the frontrunner for the job.

Tesla had until November 13 to name an independent board chairman under its agreement with the Securities and Exchange Commission, which said Musk's tweets about taking the company private were fraudulent and that the billionaire should quit as chairman but could retain his role as CEO.

As part of Musk's settlement with the SEC, Tesla also is supposed to monitor Twitter posts that he makes if they have to do with company news.


That alluded to shortsellers, investors who have bet that Tesla shares will fall and who are frequently the subject of Musk´s derision.

USA authorities sued the entrepreneur for misleading investors and he and Tesla were each fined $20m. 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 marijuana.

"The market reacted to this information and Tesla's stock price quickly traded up", said Stephanie Avakian, the SEC's Co-Director of the Division of Enforcement, in a September news conference. However, the carmaker made what Mr Musk called an "historic" profit in the most recent quarter. She was appointed as Telstra's CFO in July.

"I look forward to helping Elon and the Tesla team achieve sustainable profitability and drive long-term shareholder value", she said in the statement.

Denholm has held leadership roles in both Australia and Silicon Valley, including Juniper Networks and Sun Microsystems.

Tesla said Denholm, one of the two women on its board, will serve as chair on a full-time basis and will temporarily step down as chair of the company's audit committee until she leaves Telstra.

Like this: