Yahoo Finance Elon Musk says James Murdoch will not replace him as Tesla chair
Elon Musk has shot down reports that James Murdoch was the frontrunner to take his role as Tesla chairman when he steps down next month.
Mr Musk was forced from his post as part of a settlement with the US Securities and Exchange Commission over alleged securities fraud, where he claimed he had "funding secured" for a takeover of the electric car maker.
Mr Murdoch had been tipped as the lead candidate for the job, sources close to the talks told the Financial Times. When the newspaper tweeted it out from its Twitter account, Mr Musk replied underneath: "This is incorrect".
Tesla's board has become a source of contention with the SEC and investors, with some viewing it as too close to Mr Musk. Board members include his brother Kimbal Musk and long-term friend and investor Antonio Gracias.
Mr Murdoch was appointed to Telsa's board in 2017 and will step down from his role as chief executive of media empire 21st Century Fox when it completes the sale of its entertainment businesses to Disney. He also stepped down as chairman of Sky after its takeover by Comcast.
This is incorrect
— Elon Musk (@elonmusk) October 10, 2018
Reports last week said Mr Murdoch had been mooted as a candidate by Tesla insiders but had held formal discussions.
Earlier this year, several Tesla activist shareholder groups rallied against Mr Murdoch's reappointment to the board due to his lack of automotive experience. Around 10pc of Tesla shareholders voted against him. Tesla's share price fell 1.7pc.
The SEC requires Tesla's new chairman to be an independent candidate. The company is also expected to add two additional independent board members.
Tesla has until mid-November, 45 days after the company's settlement with the SEC, to find a replacement for Mr Musk, who has served in a dual role as chief executive and chairman of Tesla.
Mr Murdoch joined Tesla's other board members in support of Elon Musk after he rejected the SEC's first offer of settlement over securities fraud charges. The board members said they were "fully confident in Elon, his integrity, and his leadership of the company". Mr Musk later settled with the SEC for $20m.