Tesla Rallies After Naming Two Independent Directors


Tesla Inc. (NASDAQ: TSLA)

Tesla has appointed Kathleen Wilson-Thompson and Larry Ellison to join its board as part of the agreement that the electric-car maker reached with the U.S. Securities and Exchange Commission in September.

Wilson-Thompson is the current global head of human resources at Walgreens Boots Alliance, while Larry Ellison is the founder and chief technology officer at NYSE-listed Oracle Corporation.

“In conducting a widespread search over the last few months, we sought to add independent directors with skills that would complement the current board’s experience. In Larry and Kathleen, we have added a preeminent entrepreneur and a human resources leader, both of whom have a passion for sustainable energy,” said Tesla’s Board of Directors.

Shares of Tesla traded 5.4% higher premarket on the news, having closed Thursday’s regular session at $316.13. The stock extended its gains after the opening bell, climbing 1.27% to $320.15 at 10:18 a.m. GMT-5.

The Palo Alto-based company and its chief executive Elon Musk made a deal with SEC officials requiring it to appoint two independent directors and a new chairman. SEC had filed against Tesla and Musk, accusing the CEO of misleading investors after he tweeted on August 7 that he was considering taking the company private at $420 a share.

Tesla agreed to a $20 million settlement with the securities regulator to settle charges that the company failed to have required disclosure procedures and controls relating to the statements of Elon Musk on social media. Musk was also asked to pay a penalty of $20 million and step down as chairman of Tesla for a period of at least three years.

Last month, the company named Robyn Denholm as its new chairwoman, taking over from Musk who had held the position since 2004. Prior to her appointment as Tesla chair, Denholm was a member of company’s board of directors from 2004.

The 55-year-old is the current chief financial officer at Telstra Corp, a telecom company based in Australia, but she is expected to leave that role to put her focus on Tesla.

Tesla Inc. Profile

Tesla, Inc. engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. It also provides vehicle service centers, supercharger station, and self-driving capability. The firm operates through Automotive, and Energy Generation and Storage segments.

The Automotive segment includes the design, development, manufacture and sale of electric vehicles. The Energy Generation and Storage segment includes the design, manufacture, installation, sale, and lease of stationary energy storage products and solar energy systems, and sale of electricity generated by its solar energy systems to customers.

The company was founded by Jeffrey B. Straubel, Elon Reeve Musk, Martin Eberhard, and Marc Tarpenning on July 1, 2003 and is headquartered in Palo Alto, CA. – CNN Money