The Herald (South Africa)

Aussie telecoms executive to replace Musk as Tesla chair

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Electric car pioneer Tesla named an Australian telecoms executive to chair its board of directors on Thursday, after the controvers­ial Elon Musk was forced by US authoritie­s to step back from the role.

The appointmen­t of Robyn Denholm, chief financial officer with Telstra and already a Tesla board member, was effective immediatel­y but she would serve out her six-month notice period with the Australian company, Tesla said.

Musk had to resign as Tesla chair under a September arrangemen­t with US regulators to settle fraud charges stemming from a tweet in which he said he planned to take the firm private and had financing to do it.

Under that settlement, he and Tesla each had to pay a $20m (R280m) fine but Musk was allowed to stay on as chief executive.

Musk would help to ease 55-year-old Denholm’s transition, Tesla said.

“To ensure a smooth transition during the remainder of Robyn’s time at Telstra, Elon will be a resource to Robyn and provide any support that she requests in her role as chair,” the electric car maker said.

Musk praised Denholm’s input in her time on Tesla’s board.

“Robyn has extensive experience in both the tech and auto industries, and has made significan­t contributi­ons as a Tesla board member over the past four years in helping us become a profitable company,” he said.

“I look forward to working even more closely with Robyn as we continue accelerati­ng the advent of sustainabl­e energy.”

Denholm 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.”

Musk was forced to resign as chair after the US Securities and Exchange Commission charged him with securities fraud.

They alleged that he misled investors when he tweeted on August 7 that he had “funding secured” to delist Tesla at $420 (R5,889) a share, a substantia­l premium over its share price at the time.

The tweet was one of a number of issues that raised questions about the billionair­e entreprene­ur’s aptness to lead Tesla.

The tycoon was the subject of controvers­y when he smoked a joint during a September podcast interview in California and discussed the end of the universe.

Denholm has been chief financial officer and head of strategy at Telstra, Australia’s former telephone monopoly, since the start of October.

For 18 months prior to that she was Telstra’s chief operations officer, and previously held senior roles at networking equipment company Juniper Networks.

Telstra chief executive Andy Penn said: “We are sorry to see Robyn leave Telstra.

“We know that it has become increasing­ly difficult to balance her responsibi­lities as Telstra CFO with the increased activity of the Tesla board.”

 ?? Picture: REUTERS ?? ROBYN DENHOLM
Picture: REUTERS ROBYN DENHOLM

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