Electric car manufacturer Tesla is reportedly on the lookout for a new manager to control the company’s CEO, Elon Musk, as it seeks to replace him as chairman of the board.
According to recent reports, Tesla is on the lookout for a new manager to keep the company’s sometimes-erratic CEO in check. As part of Tesla’s settlement with the SEC, the company must appoint an independent chairman of the board and add two new directors to replace Musk. Some of the names rumored to be considered to replace Musk as chairman include former Vice President Al Gore, and former CEO’s including Jim McNerney of Boeing and Alan Mulally of Ford.
Dieter Waizenegger, executive director of CtW Investment Group, commented on how Tesla should handle the appointment of a new chairman, saying: “The SEC settlement is a moment for the board and the company to take a deep breath and rethink. This board really needs to evolve — it needs more women and more people of color. It’s a very insular board.”
Of the nine directors on Tesla’s board, all but three of them have connections to or are invested in Musk’s other companies.
Bret Kenwell of financial news website TheStreet.com had his own advice for Musk:
My suggestion to Musk is simple: Stop using Twitter!
It not only gives the short-sellers glee (and future ammo for ridiculing) but now it’s giving them exactly what they’re looking for — a falling stock price. Musk can defend his stance all he wants. After all, a brainiac billionaire probably isn’t worried about what most people think. But at this point the tweeting has become detrimental to Tesla’s stock price and to that effect, Musk’s net worth as he owns a significant stake in the company.
Even the longs are pleading with him. Tesla owners and shareholders are asking Musk to stop focusing on the SEC and short sellers, and simply focus on the “mission” at hand. Others say these tweets are “hurting” the company’s biggest supporters.
With shares closing lower by 7.05% to $261.95 in Friday trading, they’re right.
Tesla stock is currently trading at $263.40 as of the time of the writing of this article.