ibusinesslines.com November 13, 2018

Elon Musk out: Tesla announces new board chair

08 November 2018, 06:46 | Kelvin Horton

Robyn Denholm to replace Elon Musk as Tesla chair

Tesla names new chair to replace Elon Musk

Ms Denholm is now Chief Financial Officer at Australian biggest telecoms company, Telstra, and already sits on the board of Telsa as an independent director.

Tesla said Denholm will be serving as chair on a full-time basis.

Now playing: Watch this: SEC sues Elon Musk for securities fraud over misleading.

The tweet was one of a number of public statements by Musk that raised questions in the industry about his aptness to lead the company.

'I believe in this company. Tesla is searching for two more independent directors.

Tesla's board, which includes Musk's brother Kimbal, has long come under fire from corporate governance experts for lacking independence and being comprised of Musk loyalists.

Tesla has announced a new chair of its board of directors: Robyn Denholm.

"While Denholm is technically an independent member of the board, she has been part of the Musk team for some time now and that suggests she will not be up to the task of checking Musk's worst instincts", said Stephen Diamond, a professor of law at Santa Clara University who specializes in corporate governance. "Do you ask the person who helped get you lost in the woods to help drive you out of the woods?"

Email messages sent to Denholm Thursday were not immediately returned. Tesla shares rose slightly to $349.34 in premarket trading.

The spokeswoman added that Tesla was actively looking for two additional independent directors.

The settlement with the securities watchdog required Musk and Tesla to each pay $20 million in fines (€17.5 million).

Robyn Denholm has experience in both Australia and Silicon Valley across a range of big companies, including Telstra, Juniper Networks, Sun Microsystems, as well as Toyota, where she worked in numerous finance management roles. Since January 2017, she has also been chief financial officer of Australian telecoms firm Telstra. Telstra is the largest telecommunications company in Australia. "Very much look forward to working together", he wrote. Musk and Tesla settled with the Securities and Exchange Commission (SEC) in September after the USA agency sued for fraud.

Tesla earned a $311.5 million net profit during the third-quarter, delivering the first step of a promise from Musk to post sustainable profits.

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