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Tesla is shuffling its board of directors amid ongoing negotiations with the Securities and Exchange Commission

Apr 20, 2019, 04:28 IST

60 Minutes

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  • Tesla on Friday announced four members of its board of directors will leave their posts once their terms have ended.
  • Brad Buss and Linda Johnson Rice will not pursue reelection to the board at Tesla's stockholders' meeting in June. And in 2020, Steve Jurvetson's tenure will officially end. Jurvetson has been on leave following accusations of sexual misconduct at his venture-capital firm Draper, Fisher, Jurvetson in 2017.
  • A fourth independent director, Antonio Gracias would also bow out in 2020 if Tesla stockholders approve a proposal to reduce director terms from three years to two. If that proposal fails, Gracias would instead exit in 2021, the electric-car maker said.
  • The shuffle on the board of directors comes as CEO Elon Musk and the Securities and Exchange Commission negotiate terms governing Musk's activity on Twitter, a matter on which the chief executive and federal regulators have locked horns in recent months.
  • Visit BusinessInsider.com for more stories.

Tesla on Friday announced four members of its board of directors will leave their posts once their terms have ended.

Brad Buss and Linda Johnson Rice will not pursue reelection to the board at Tesla's stockholders' meeting this June. And in 2020, Steve Jurvetson's tenure will officially end. Jurvetson has been on leave following accusations of sexual misconduct at his venture-capital firm Draper, Fisher, Jurvetson in 2017.

A fourth independent director, Antonio Gracias will also bow out in 2020 if Tesla stockholders approve a proposal to reduce director terms from three years to two. If that proposal fails, Gracias would exit in 2021, the electric-car maker said.

Read more: Elon Musk said Tesla cars will probably be better than humans at driving by the end of 2019

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This latest shuffle follows what has already been a turbulent year for Tesla and its CEO Elon Musk, who has repeatedly locked horns with the Securities and Exchange Commission.

The parties are currently negotiating terms governing the chief executive's use of public social-media platforms to make statements about Tesla.

Those talks stem from a dispute over previous statements Musk has made online that federal regulators say contained material information about Tesla that were not vetted internally before publication, or contradicted facts and figures already shared with investors.

A judge on Thursday granted Musk and the SEC more time to complete their latest round of negotiations.

NOW WATCH: Take a look at the Genesis Mint, a two-seater electric vehicle concept with doors that ease access to the trunk in bumper-to-bumper parking

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