Elon Musk denies report James Murdoch likely to be next Tesla chairman

SpaceX
founder and chief executive Elon Musk

Chris
Carlson/AP Photo

• Elon Musk just denied a report that James Murdoch is
  top choice for the next chairman of Tesla.
• The FT has reported that Murdoch, the CEO of 21st
  Century Fox was favored for the role, but Musk pushed back via
  Twitter.
• “This is incorrect,” the Tesla CEO tweeted, without
  elaborating.
• Musk has been forced to vacate the role as part of a
  settlement with the SEC that is also seeing him pay a $20
  million fine over his abortive effort to take Tesla
  private.

Elon Musk has denied a report that James Murdoch is the top
choice to be the next chairman of Tesla.

On Wednesday,
The Financial Times reported that the 21st Century Fox CEO and
son of Rupert Murdoch would take the role being vacated by
the electric vehicle entrepreneur following a settlement with the
Securities and Exchange Commission (SEC). 

But Musk shot back on Twitter, tweeting “this is incorrect” in
response to their headline. It’s unclear whether he meant it was
incorrect that Murdoch was the “lead candidate” as The FT
reported, or that it was incorrect that Murdoch was in
consideration at all. The CEO did not immediately respond to a
request for clarification via Twitter.

Musk agreed to step down as chairman of Tesla’s board for three
years as part of a settlement with the SEC, which brought charges
against Musk in late August for his now-infamous “funding
secured” tweet, though he will remain CEO. Musk was also fined
$20 million and Tesla must appoint two more independent board
members as part of the settlement. He was given 45 days to step
down as chairman.

There had already been speculation that Murdoch, who has served
on Tesla’s board as a nonexecutive director since last
year, was the leading contender for the
chairman position. But Murdoch has also faced blowback from
shareholders in the past, with critics citing his lack of
relevant experience. And as an incumbent director on Tesla’s
much-maligned board, Murdoch would likely face criticism for his
role on a board
viewed by many being far too cozy with Musk.

Earlier this year, the proxy advisor Glass Lewis and the pension
fund CtW Investment Group pushed for shareholders not to reelect
Murdoch to the board. CtW also asked for shareholders to vote
against reelecting Antonio Gracias, a private-equity investor,
and Kimbal Musk, Musk’s cousin.

Others who have been floated as possible chairman candidates
include Al Gore, Warren Buffett, and Alan Mulally.