The board of electric vehicle and solar panels manufacturer has appointed Australian telecoms executive Robyn Denholm as president with immediate effect (photo: Reuters / Twitter)
Tesla's executive committee appointed one of its members as a new director to replace Elon Musk, respecting the terms of an out-of-court settlement with US securities regulators for fraud.
The board of the electric vehicle manufacturer and solar panel appointed the Australian telecoms executive Robyn Denholm as president with immediate effect.
Elon Musk resigns to Tesla to avoid demand by fraud
Denholm will resign as Chief of Finance and Strategy at Telstra, Australia's largest telecoms company, after six months. He will work full time at Tesla, where he served in his council since 2014.
Musk will remain as CEO of Tesla as part of the deal with the US Securities and Exchange Commission (SEC). The agency filed a lawsuit claiming that Musk defrauded investors in August with Twitter misleading statements about securing funding for Tesla to stop trading on the stock market.
Musk is accused of fraud by the US Securities and Exchange Commission
Appointment has made Denholm 55 years old from a relative obscurity to a high position to try to control Musk and lead a company struggling to produce vehicles and generate money with vehicles running on batteries instead of combustible.
I believe in this company. I believe in my mission and look forward to helping Elon and Tesla team achieve sustainable profitability and stimulate long-term shareholders, "Denholm said in a statement.
Critics of Tesla's board of directors have said members are not independent and are too close to Musk, many through financial agreements. Kimbal, Musk's brother, is one of his members.