Baillie Gifford, Tesla’s largest institutional shareholder and investment management company, said Tesla was doing better after CEO Elon Musk was monitored, according tomedia reports. ‘We thought he messed up,’ James Anderson, a Baillie Gifford executive, said of Musk.
Mr Anderson said Tesla was now “in better shape” after a regulatory battle and increased independent directors to oversee Musk. Tesla has appointed independent directors such as Larry Ellison, Oracle’s founder, and James Murdoch, the media mogul.
Mr Anderson also singled out the importance of Tesla’s appointment of Robyn Denholm, executive of Telstra, Australia’s largest telecommunications company, as chairman. Mr Anderson said Robin Denholm had provided Mr Musk with “emotional support” to focus on leading the company.
Baillie Gifford, Tesla’s largest institutional shareholder, first bought Tesla shares in 2013 and currently owns about 7.5 percent of the stock, worth about $9.7 billion.
But Musk has expressed disagreement. In late 2018, Musk said on social networks that the chairman was an honorary, not executive, which meant that running Tesla didn’t need it at all. I will remove the post within three years.
In an interview, Musk also said it was “unrealistic” to expect New Tesla Chairman Robin Denholm to oversee his actions because he remains the electric car company’s largest shareholder. ‘In a sense, I’m the biggest shareholder in the company, and that’s not realistic, ‘ Mr. Musk said. I can initiate a shareholder vote and do whatever I want, “I have the support of Tesla shareholders.”
In November 2018, Tesla announced the appointment of Robyn Denholm as its chairman. The change is part of a settlement between Musk, Tesla and the Securities and Exchange Commission. Under the terms of the settlement, Musk will step down as Tesla’s chairman and be replaced by an independent director, and Musk will not be eligible to be elected chairman for three years.