Tesla Names Two New Directors to Board as Part of SEC Settlement With Elon Musk

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Tesla revealed two brand-new additions to its board on Friday: Kellogg alum Kathleen Wilson-Thompson and Oracle co-founder and CTO Larry Ellison, who has described himself as a close friend of Elon Musk.

The 2 sign up with the board as part of the settlement Tesla and Musk reached with the U.S. Securities and Exchange Commission (SEC) over Musk’s bananas “420” tweet about taking Tesla private. The settlement needed, to name a few things, that the electric car company induces 2 new independent directors.

” In conducting an extensive search over the last few months, we sought to add independent directors with abilities that would complement the current board’s experience,” Tesla’s Board of Directors stated in a declaration. “In Larry and Kathleen, we have included a preeminent entrepreneur and a personal leader, both of whom want sustainable energy.”

According to CNBC, Ellison owns 3 million shares of the business’s stock. He has explained his relationship with Musk as “extremely close friends” and has actually protected the Tesla CEO amid ongoing drama primarily of Musk’s own making by a method of his being very online. But according to CNBC, the business is now attempting to minimize the connection, per the SEC’s stipulation of an “independent” director:

A Tesla spokesperson minimized Ellison and Musk’s personal relationship, saying the two had actually only interacted socially a handful of times and always in a group setting. The representative said Musk and Ellison had not spoken for about a year leading up to Ellison’s consultation to the board.

Both Musk and Tesla were fined $20 million as part of the business’s settlement with the SEC, and Musk agreed to step down as chairman of the company for at least three years. In addition, the SEC tasked Tesla with managing Musk’s tweets and other interactions– something Musk stated in a current 60 Minutes interview does not happen and which is perhaps best evidenced by the fact that he continues to tweet at all.

In early October, Musk appeared to openly mock the SEC on Twitter by describing it as the “Shortseller Enrichment Commission.” That very same month, Musk tweeted that his infamous 420 tweet was “worth it” for the likes.

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