Tesla’s addition of Larry Ellison to board is a ‘home run appointment’, analyst says
Longtime bull Wedbush analyst Daniel Ives says move may remove overhang on the stock from going-private tweet
Tesla Inc.’s addition of Oracle Corp. founder Larry Ellison to its board is a “home run appointment” for the company that will boost the stock on Friday, according to one analyst.
Walgreens Boots Alliance’s WBA, -0.88% Global Chief Human Resources Officer Kathleen Wilson-Thompson will be the “second impressive” independent director, said Wedbush analyst Daniel Ives, a longtime Tesla bull.
Tesla TSLA, +1.75% announced the addition of the two new directors earlier Friday, as it moved to comply with one of the conditions of the settlement with the Securities and Exchange Commission struck by Chief Executive Elon Musk over his going-private tweet earlier this year.
Musk irked the regulator with a tweet that implied he had secured funding for a deal when he had not. The executive agreed that he and his company would each pay a $20 million fine, that he would resign as chairman of the board and that the company would add two new independent directors to beef up corporate governance.
“Given Ellison’s stature in tech circles, strong reputation in the Valley and on the Street, and vast accomplishments at Oracle ORCL, -0.11% among other achievements over the past 40 years, the addition of Mr. Ellison on the board, in our opinion, is another key step forward for Tesla and Musk as the company starts to build an independent and well regarded board that can help the company navigate through transformational opportunities in the electric vehicle market over the coming years with competition and production complexity a key factor that needs to be handled without a major speed bump,” Ives wrote in a note....MORE