Tesla: James Murdoch favourite for chairman

Tesla: James Murdoch favourite for chairman

According to reports, James Murdoch is the favourite to replace Elon Musk as Tesla’s chairman.

The Financial Times reported on Wednesday that the son of Rupert Murdoch is likely to report Musk after he is forced to step down as the group’s chairman.

After reaching a settlement with the US financial watchdog the Securities and Exchange Commission (SEC), Musk and Tesla had to pay $20 million in fines each, whilst Musk also had to step down as chairman.

A person briefed on the discussions told the Financial Times: “The Tesla chairman job is perfect for James. He’s working on this fund and will be sitting next to Elon … he’s going to get access to so much deal flow.”

Murdoch is currently chief executive of 21st Century Fox however, will soon leave the role and will be succeeded by his brother. He is a non-executive director of Tesla and has reportedly said he wants the job of the chair.

Musk responded to the report published in the Financial Times writing: “This is incorrect.”

Tesla has until mid-November to find a replacement for Musk, who’s turbulent behaviour has led to shares crash 27% since he tweeted his intention to take the firm private at $420 a share.

Musk abandoned the plan just weeks later after it emerged he had, in fact, not secured funding. This led an investigation by the SES, who accused Musk of fraud.

Musk has faced many controversies this past year, including calling the British diver who was involved in saving the trapped Thai boys a “pedo” and smoking marijuana on a live video podcast. 

Shares in Tesla (NASDAQ: TSLA) closed on Wednesday down 2.25% at 256,88.