James Murdoch seen as favorite to replace Musk as Tesla chair: report

James Murdoch seen as favorite to replace Musk as Tesla chair: report
© Greg Nash

James Murdoch, the outgoing chief executive of 21st Century Fox, is the favorite to replace Elon Musk as the chairman of Tesla, sources told the Financial Times on Wednesday.

Musk must relinquish his chairmanship as part of a settlement with the Securities and Exchange Commission (SEC) after the agency hit him with fraud charges. Musk will remain the company's chief executive.

Murdoch, who is currently a nonexecutive director at the company, is the lead candidate for the job, two sources familiar with the matter told the FT.

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He has been considering creating a technology investment fund and has spoken positively of his relations with Tesla and Musk.

At a recent Goldman Sachs conference, Murdoch praised Musk, saying that “what’s exciting about the company and about Elon is the goals are so audacious."

"He’s an entrepreneur who has some really audacious goals about what can be created and what can be settled for.”

Tesla has until mid-November to meet the 45-day deadline set by the SEC. The company did not immediately respond to The Hill's request for comment on the issue.

Musk and Tesla must each pay $20 million in fines to the SEC as well.

Musk drew the attention of regulators after he tweeted that he had a deal to take Tesla private at $4.20 a share. Musk in fact had not finalized any such deal and later claimed the tweeted share price was a reference to marijuana.