Shares of Tesla TSLA added nearly 5% on Friday after the company announced the appointment of Larry Ellison and Kathleen Wilson-Thompson to its board of directors.
The new board members are a result of Tesla CEO Elon Musk's settlement with the SEC that stemmed from a series of tweets hinting at a take-private deal for the electric car company. The infamous "Funding secured" tweet and its follow-ups led to fraud charges for Tesla and Musk, and to settle those charges, Musk agreed to take a few reparative actions.
To date, Musk has already stepped down from his role as Chairman of the Board, which he is barred from holding for three years; Tesla and Musk have paid their fines; and the company has apparently put new procedures in place to monitor the CEO's public communications.
Today's appointments mark the completion of the final piece of the settlement, which required Tesla to add two new independent directors to its board.
Wilson-Thompson currently serves as the Global Human Resources Officer for Walgreen Boots Alliance WBA , while Ellison remains an icon in the tech industry after founding and leading Oracle ORCL for many years.
So how do investors feel about the new members of Tesla's board? Well, a roughly $14.75 climb to a fresh weekly high for the stock certainly seems like a good market-wide reaction, and initial thoughts from our strategists have been optimistic.
Zacks Strategist Dave Borun wrote today that Wilson-Thompson is a "consummate corporate professional with an impeccable resume that includes experience at the highest levels of human resources at large companies."
Borun also described Ellison as possessing a "unique" ability to "understand Musk's full-speed-ahead impulses, while also possessing the experience that should help Musk channel those impulses in a positive direction."
An experienced HR professional and a tech pioneer definitely feel like the right fits for Tesla right now, and the market has agreed so far.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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Tesla, Inc. (TSLA): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
