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Major Tesla Investor Feels More 'Comfortable Now' After Musk Supervisors Appointed

A major investor in Tesla Inc. (NASDAQ: TSLA) said the company is better run after independent directors were appointed to supervise Elon Musk.

Benzinga · 03/09/2020 09:16

A major investor in Tesla Inc. (NASDAQ: TSLA) said the company is better run after independent directors were appointed to supervise Elon Musk.

What Happened

James Anderson, the head of global equities for Baillie Gifford, said, “We thought he was getting things wrong,” when referring to Elon Musk’s leadership.

Alluding to the reshuffle at the top of the company, Anderson revealed that he feels more “comfortable now,” the Financial Times reports. He called the appointment of Robyn Denholm, an independent board member since 2014, a “decisive move.”

Why It Matters

Elon Musk resigned as Tesla Chairman after being charged with securities fraud by the Securities and Exchange Commission (SEC) in 2018. Conditions for a settlement also required two independent directors to be appointed. Musk and Tesla were fined a total of $40 million by the SEC.

The company later named Denholm as Chairperson. She has experience working in both the automotive and technology sectors through her stints at Toyota Motor Corp. (NYSE: TM) and Juniper Networks Inc. (NYSE: JNPR). 

Price Action

Tesla shares traded 1.81% lower at $690.75 in the after-hours session on Friday. The shares had closed the regular session 2.91% lower at $703.48.

Photo Credit: Public domain photo via Wikimedia.