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Musk denies James Murdoch taking over as Tesla's Chairman

13 October 2018

Mr Murdoch is now chief executive of the USA media giant 21st Century Fox, but he will step down after the firm completes the sale of much of its business to Walt Disney.

Murdoch is a non-executive director of Tesla and has reportedly signaled that he wants to take over as chairman according to sources familiar with the situation, according to Reuters. Twenty-First Century Fox declined to comment. Two proxy advisors, Glass Lewis & Co and Institutional Shareholder Services, advised investors to vote against reelecting Murdoch as a director in June, citing his lack of experience in the field, his "troubled history as an executive and director", and his presence on "too many boards". He also stepped down as chairman of Sky after its takeover by Comcast.

And according to Atherton Research, which compiled the report, Tesla was just 1754 shy of knocking over the other German giant, BMW. Also, as a caveat to the news about James, it should be pointed out that the FT's report today says external candidates are still being looked at. Also, usually, auto companies don't like to be associated with hard liquor, seeing as more than 10,000 people die in alcohol-related crashes in the USA each year.

Tesla is under scrutiny for failing to produce its Model 3 sedan quickly enough and in sufficient volume to meet customer demand.

Under terms of the settlement, Musk is not permitted to be re-elected to the chairman post for three years.

Initially rejecting an SEC offer to settle the case, Musk relented two days after the fraud complaint and agreed to resolve the matter by paying the penalty, stepping down as chairman and agreeing to oversight about his communications on company news.

It is meant to create more oversight of Mr Musk, who provoked the charges when he claimed on Twitter that he had secured funding and might take the firm private.

Shares of Tesla closed Thursday down 1.8 percent at $252.23 as the Dow Jones Industrial average dropped over 500 points.

Musk denies James Murdoch taking over as Tesla's Chairman