Elon Musk floats possibility of someone succeeding him at Tesla

James Murdoch, a Tesla Inc director, testified in court on Wednesday that CEO Elon Musk has in the last few months identified someone as a potential successor to head the electric carmaker.

Murdoch, who did not name the potential successor, was testifying in a trial over Musk’s 2018 Tesla pay package.

When a plaintiff’s lawyer asked him to confirm that Musk has never identified someone as a potential successor CEO, Murdoch said, “He actually has,” adding that happened in the “last few months.”

Some Tesla investors are worried about whether Musk can focus adequately on his role as CEO of the world’s most valuable carmaker now that he has been running Twitter Inc after a protracted buyout that at one point he tried to scrap. Murdoch testified that Musk has had some Tesla engineers work at Twitter.

Murdoch’s testimony did not make it clear how specific the conversation about the successor was. Antonio Gracias, a longtime friend of Musk who was also a Tesla board member from 2007 to 2021, testified that there were conversations of finding an “administrative CEO” who oversees sales, finance and human resources “so Musk can focus his time as chief product officer which is his most vital function.”

But he added they could not find one, without elaborating on the timing of the discussions.

Musk, who is CEO of Twitter and rocket company Space X, among others said, “Frankly I don’t want to be CEO of any company.”

Musk testified that he expected to reduce his time at Twitter and eventually find a new leader to run the social media company.

On Monday, Musk said he had worked through the night at Twitter’s San Francisco headquarters and would keep “working & sleeping here” until the social media platform — which he recently acquired for $44 billion — was fixed. “It’s worth noting there’s a light year gap between identifying someone and having that someone take the job,” Tesla investor Gene Muster tweeted after the news.

At Tesla’s shareholders meeting in August, Musk was asked about succession plan and replied: “I intend to stay with Tesla as long as I can be useful.” At the time, Musk also said, “We do have a very talented team here. So I think Tesla would continue to do very well even if I was kidnapped by aliens or went back to my home planet maybe.”

Musk claims no role in setting his $55-bn pay deal at Tesla

Elon Musk told a Delaware judge he had no role in setting up his $55 billion pay deal to run Tesla in 2018 and that he was focused instead on solving the complex problem of creating a sustainable electric-vehicle company.

“I do not have any understanding of the internal processes by which this compensation structure was obtained,” Musk said during the third day of trial over a lawsuit by a Tesla investor who claims his compensation was excessive and should be returned to the company. Musk, the world’s richest person, said he never discussed his compensation with board members or dictate the terms of the deal.

However, court filings in the case show the entrepreneur was asked in a text by his friend Ira Ehrenpreis, a Tesla board member, on April 8, 2017, about how to structure his future compensation.

-BLOOMBERG

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)