Analyst claims Al Gore could be a good fit as new Tesla chairman

Former US Vice President Al Gore could be a good fit to replace Elon Musk as chairman, according to one longtime tech analyst.    

Gene Munster, venture capitalist at Loup Ventures, said Gore would be able to use the role to get Musk, who is still CEO of Tesla, in line. 

Musk agreed to resign as Tesla chairman within 45 days as part of his settlement with the SEC.

Gene Munster, venture capitalist at Loup Ventures, said former Vice President Al Gore would be able to use the role to get Elon Musk, who is still CEO of Tesla, in line

Munster said Gore would be a worthwhile candidate as he has served on Apple’s board of directors since 2003 and is a prominent figure in the alternative energy industry.

‘The open board chairperson role creates an opportunity for Tesla to potentially put someone in place that is capable of influencing Musk and helping Tesla reach sustainability,’ said Munster, who is a noted Tesla bull. 

‘Al Gore, currently on Apple’s board, could be an interesting fit given his interest in climate change.’

Additionally, Gore notably voiced his confidence in Musk’s vision for Tesla in a Reddit ‘Ask Me Anything’ thread a few years ago. 

In response to a question asking whether he thought Tesla would ‘make it as a car company,’ Gore replied: ‘Yes! In Musk I trust.’ 

Tesla is now looking to fill its chairman role following the company’s announcement of Musk’s resignation over the weekend. 

As part of Elon Musk's settlement with the SEC, he agreed to resign from his role as chairman in 45 days. It brings a conclusion to the fraud charges over his 'funding secured' tweet

As part of Elon Musk’s settlement with the SEC, he agreed to resign from his role as chairman in 45 days. It brings a conclusion to the fraud charges over his ‘funding secured’ tweet

The move brings a conclusion to the SEC fraud charges over his infamous ‘funding secured’ tweet. 

Musk posted a series of tweets in August that detailed his now-defunct plans to take the electric carmaker private. 

In addition to Gore, Munster also suggested former Boeing CEO Jim McNerney as a possible person to step in as chairman. 

Munster added that the settlement serves as a good opportunity for Musk to re-evaluate how interacts with the public on Twitter.

‘…The lawsuit could serve as a wakeup call for Musk to tone down some of his public-facing behavior, particularly on Twitter,’ Munster explained. 

‘If Musk can step away from the external stuff that doesn’t matter, he’ll make the game that much easier for himself, and that will be good for everyone, just like this settlement.’

Besides a new chairman, Tesla was also ordered to appoint two new, independent members to its board. 

A more assertive board could provide the kind of tighter oversight that many legal experts, and Tesla investors, say is overdue for a company of Tesla¿s market value

A more assertive board could provide the kind of tighter oversight that many legal experts, and Tesla investors, say is overdue for a company of Tesla’s market value

WHY DID ELON MUSK WANT TO TAKE TESLA PRIVATE?

In a shock announcement in August, Tesla CEO Elon Musk announced that he has weighed taking the electric car company private at $420 a share.

Later that month, Musk announced that Tesla would remain a public company.

A take-private price of $420 a share would value Tesla at $82 billion and marks a significant jump from the stock’s current levels of roughly $379 a share.

Going private involves a transaction(s) that take a company off the public market, meaning retail investors can no longer trade shares on the stock market. 

Take-private transactions may be led by a non-controlling shareholder, a private equity firm making a leveraged buyout or a consortium of companies. 

Musk said he has received broad investor support for the move. The only thing standing in the way of an official announcement is a shareholder vote. 

Going private would allow Tesla to avoid many of the pressures of the public markets, such as wild stock swings, scrutiny from Wall Street analysts, as well as ‘attacks’ from short-sellers – a group that Musk has said ‘want [Tesla] to die so bad they can taste it.’ 

In a letter to employees, Musk said Tesla’s volatile stock has served as a ‘major distraction’ to staff and that being public created a lot of pressure on the company to ‘make decisions that may be right for a given quarter, but not necessarily right for the long-term.’ 

If Tesla went private, it would no longer be forced to file public financial statements or host quarterly earnings calls with Wall Street analysts.

These events tend to cause upward or downward swings in Tesla’s stock. 

A more assertive board could provide the kind of tighter oversight that many legal experts, and Tesla investors, say is overdue for a company of Tesla’s market value. 

Yet a more forceful board, coupled with a domineering CEO like Musk, could create conflicts at a risky time for the company. 

Visionary CEOs such as Apple’s Steve Jobs and Twitter’s Jack Dorsey have been forced out by strong boards of directors, though both eventually returned to their companies. 

Tesla is also under heavy pressure to turn a profit because it is burning through $1 billion in cash every three months and, as of the end of June, had just $2.2 billion in the bank.

Musk has said the company needs to produce 7,000 cars a week to make money, a target he aimed to reach in the July-September quarter. 

The company is likely to report production numbers this week and financial results from that quarter in early November. 

Read more at DailyMail.co.uk