No one can deny that 2018 was a very rough year for Tesla. The year saw its owner, Elon Musk, removed as CEO, which in turn caused the company’s stock to plummet due to lack of confidence. However, it seems that when all is said and done, Tesla may very well end this tumultuous year on an up note.
Tesla’s stock surged on Friday, up 4.28% to $329.67 a share, after reports that former CEO Elon Musk’s replacements had been announced. Oracle founder Larry Ellison was installed as one of two new independent directors on the company’s board. The other was Kathleen Wilson-Thomas, formerly of Walgreens Boots Alliance as human resources global chief. After Musk voluntarily stepping down as CEO, and the announced installation of the two new board directors. Tesla has fulfilled its requirements from its settlement with the SEC earlier in the year.
From the very beginning, Ellison has been a major defender of the electric car maker, so much so that Ellison purchased three million shares of stock in the company earlier this year. According to a previous financial disclosure, this is Ellison’s second-largest personal stock purchase to date.
Tesla stated that the search for the replacement directors was both “thorough and expansive.” The requirements for the candidates were that they have various skill sets the company was looking for, as well as a strong, personal driving belief in what Tesla stood for and was working to achieve—that of quickening the world’s move to more sustainable energy sources and methods.
In a press release, Tesla stated that they felt that Ellison and Wilson-Thomas were the perfect choices, as one had the experience in entrepreneurship, while the other in human resources management. Both also share the company’s passion for sustainable energy as well.
Tesla, as well as its founder Elon Musk, has been no strange to controversy or press. However, August of this year saw all the controversy come to a head when Elon Musk stated that he had a “private deal” that would result in Tesla going private at $400 a share. That very statement is what ignited the SEC investigation, and when all the smoke was cleared, saw Musk being ousted as CEO from his own company.
As a requirement of terms set down by the SEC, Tesla had a deadline of December to find new directors to replace Musk. It would seem they came right down to the wire, but the announcement was made.
Do you think the new blood will solve Tesla’s ongoing problems?