Electric vehicle manufacturer Tesla has named Larry Ellison, founder of tech company Oracle, a new board member. Larry wasn't the only individual named to a new position though. There's also Kathleen Wilson-Thompson who was added to the board.
Despite the new people coming on the board, it doesn't mean Elon Musk is gone. Ellison is actually a large investor and as he said "very close friends" with Musk in October at a financial analyst meeting during the Oracle OpenWorld conference. In fact, he owns three million shares of Tesla stock.
As for Kathleen, according to CNBC, she's the global head of human resources at Walgreens Boots Alliance. This means that she might be able to bring some fresh new views in that area to the company.
According to CBC to be effective immediately and is actually part of an arrangement made after Tesla and its creator, Elon Musk, got into a bit of trouble with SEC (U.S. Securities and Exchange Commission) and was accused of fraud by saying on the social media site known as Twitter that he had "funding secured" to make the move in turning the company private at $420 US per share.
In the end, Musk basically saved his job as CEO of the company by agreeing that both him and Tesla will together, cough up $20 million as a penalty for the deal. Alongside that, there was even thought of how he misled investors who apparently, at the time, increased the price of the shares by 11 percent. This means that they may have put more money into the company since they believed that it was going to be going private, and ultimately having a higher share price than at the current time.
On top of everything, there's also the fact that this is only going to be happening for at least three years since that seems to have been part of the deal. Assuming Musk wants to get back on the board member train, he'll need to be on his best behavior until then. However, this doesn't mean that Musk will be back on the board, these two new people are experienced and could definitely help the company out in the long run. That's important since Elon Musk has the possibility to make some investors angry when he Tweets things that get him and the company in trouble.