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DAVID: TESLA NAMING A NEW CHAIR
TO REPLACE ELON MUSK AFTER HE
AGREED TO STEP DOWN FROM THE
COMPANY'S BOARD AS PART OF THAT
SETTLEMENT WITH THE SEC MUSK'S
SUCCESSOR IS ROBYN DENHOLM.
SHE HAS BEEN A TESLA BOARD
MEMBER SINCE 2014.
CURRENTLY SERVES AS A CFO FOR
AUSTRALIAN TELECOM COMPANY.
DENHOLM IS FACED WITH ALMOST I'M
POSSIBLE JOB OF OVERSEEING ELON
MUSK.
GANG, WHAT HAPPENS THE FIRST
TIME THERE IS A CONFLICT BETWEEN
THE TWO?
>> WELL, GIVE MY OPINION.
FIRST OF ALL I THINK THE
CONFLICT GOES MUSKS WAY AND THIS
IS --
>> REALLY.
>> THIS IS WINDOW-DRESSING AS
FAR AS I CAN TELL.
BRING SOMEONE IN FROM BASICALLY
MUSKS INNER CIRCLE, OH, NOW YOU
WILL BE MY DEFACTO BOSS I THINK
PLACATING THE SEC.
THE OTHER THING, IT IS
INTERESTING, BACK IN 2015, NOW
GRANTED SHE IS NOT CEO BUT LET'S
CALL HER THE CHIEF EXECUTIVE,
ONLY 13% OF CEO'S CAME FROM THE
CFO RANKS.
THAT'S IMPORTANT BECAUSE --
>> SHE IS CHAIRWOMAN THOUGH.
>> PEOPLE THAT ARE CFOs IS A
DIFFERENT BOLT OF CLOTH FROM
CEO'S.
DIFFERENT SET OF LEADERSHIP
SKILLS.
MAYBE SHE IS DIFFERENT.
I'M JUST NOT SURE, A, ANY CFO IN
THIS REGARD IS GOING TO BE THE
RIGHT PERSON.
>> SHE IS THE CHAIRWOMAN, RIGHT?
SHE BECAME THE CHAIRWOMAN.
DAVID: CFO OF A TELECOM COMPANY.
>> BECAME THE CHAIRWOMAN BASED
ON SEC SETTLEMENT OF FUNDING
SECURED TWEET.
IT IS GREAT LOOKING AT HER
SMILE.
YOU GET THE IMPRESSION THAT WILL
BE LAST TIME SHE WILL BE
SMILING, DEALING WITH CRAZY
ELON.
WILL SHE STOP HIM TO STOP
SMOKING POT?
>> ABSOLUTELY NOT.
>> IS SHE GOING IN THERE, ELON
YOU CURSED OUT JILL CHANOS THE
SHORT SELLER, STOP IT PLEASE?
REIN IT IN, DON'T SAY THAT.
NO WAY!
>> ABSOLUTELY NOT SHE WILL NOT
DO THAT.
EVERYONE SAYS THIS IS MISSED
OPPORTUNITY TO SHOW
ACCOUNTABILITY ON THIS BOARD.
IF SHE HASN'T BEFORE, IF THEY
HAVE NOT BEEN ABLE TO PUT A
MUZZLE ON THIS GUY AND HIS
TWEETS.
RIGHT AFTER THE SETTLEMENT HE
TWEETS THE SEC IS THE SHORT
SELLERS ENRICHMENT COMMISSION?
IF THEY CAN'T CONTROL THAT, WHY
WOULD THEY CONTROL NOW?
>> IN REFERENCE TO ONE OF MY
STORIES THE SEC IS STILL
INVESTIGATING THEM.
HE WAS ON THE BOARD, PICKED BY
ELON MUSK.
GUESS WHO ELSE IS ON THE BOARD?
DAVID: THE BROTHER.
>> HIS BRO.
DAVID: THIS IS REALLY A BUDDY
BOARD.
THE PHRASE WHERE THE CEO PICKS
ANYBODY WHO WILL AGREE WITH HIM.
THAT IS WHAT THE WHOLE BOARD IS,
RIGHT?
>> IT IS FOR SURE BUT WHEN YOU
LOOK AT A COMPANY LIKE TESLA,
LOVE ELON MUSK OR HATE ELON MUSK
IT IS HIS COMPANY.
TO HAVE HIM BE THE ONE, I DON'T
THINK ANYONE EXPECTED WHO WOULD
COME IN TO REALLY TRY TO REIN IN
ELON MUSK'S COMPANY.
IT IS ELON MUSK'S COMPANY.
DAVID: ON THE OTHER HAND, STOCK
ANALYSTS, OTHER INVESTORS COME
AROUND A LITTLE BIT IN THINKING
THAT TESLA, YOU KNOW, WASN'T
MAYBE BURNING AS MUCH CASH.
THEY'RE MAKING MORE, THEY HAVE A
LOT OF BOND PAYMENTS COMING DUE.
THEY WILL NEED MORE CASH.
BUT STILL THEY ARE TURNING
AROUND A BIT, RIGHT?
>> OBVIOUSLY.
THE STOCK BOUNCED BACK.
THEY HAD A GOOD QUARTER.
I THINK WE GO TOO FAR, TO SAY A
TOTAL BUDDY BOARD.
YES HIS BROTHER IS ON IT.
THIS WOMAN IS REALLY GOOD
EXECUTIVE.
DAVID: VERY SMART.
>> HER RECORD AT TELSTRA.
DAVID: SUN MICROSYSTEM.
>> SHE IS VERY GOOD AT
COST-CUTTING.
THAT IS WHAT THEY NEED.
THEY HAVE CASH PROBLEMS.
JAMES MURDOCH IS ON THE BOARD WE
SHOULD POINT OUT.
HE IS NOT A BUDDY OF ELON MUSK.
THERE ARE PEOPLE ON THE BOARD
KNOWS THEY HAVE TO REIN HIM IN.
BUT THIS ONE SMELL AD LITTLE TO
ME BECAUSE HE HAD A ROLL IN
PICKING HERE, WHAT I UNDERSTAND.
THAT IS NOT MUCH --
DAVID: THIS SATISFY THE SEC?
>> YES THERE IS NO, IF YOU LOOK
AT THAT SETTLEMENT.
THERE IS NOTHING THEY CAN DO,
NOTHING.
THAT IS THE DEAL THEY CUT.
VERY UNREGULATORY SEC I WILL
SAY.
>> MAYBE THIS ISN'T SUCH A BAD
THING THOUGH AND FOR THIS
REASON.
WHEN STEVE JOBS BROUGHT IN THAT
GUY, SCULLY, FROM PEPSI, IT WAS,
AND HE DIDN'T LAST VERY LONG,
BUT IT WASN'T ANY LESS
STEVE JOBS' COMPANY.
>> SCULLY FIRED STEVE JOBS.
>> YEAH.
SO I'M NOT SURE THAT MAYBE IT IS
NOT SUCH A BAD THING THAT YOU
KNOW, THE FIGUREHEAD IS THIS
DENHOLM BUT IT IS STILL MUSKS'S
COMPANY.
I GUESS IT GETS BACK TO MIKE'S
POINT.
IF YOU BELIEVE IN ELON MUSK,
MAYBE WE'RE PLACATING THE SEC
AND THINGS GO ALONG.
IF YOU DON'T, WELL, THEN IT
WASN'T GOING TO BE A GREAT
COMPANY ANYWAY.
>> I THINK YOUR ANALOGY IS GREAT
ON JOBS IS IN DIFFERENT WAY.
STEVE JOBS WHEN HE CAME BACK TO
APPLE, AFTER THEY BLEW OUT
SCULLY WHO OBVIOUSLY WASN'T UP
TO THE JOB, BRING BACK
STEVE JOBS, HE WAS A MUCH
DIFFERENT CEO.
HE WAS A MUCH MORE DISCIPLINED
CEO.
HE HAD TIM COOK RUNNING THE
OPERATIONS.
HE ACTUALLY GOT ALONG WITH HIS
BOARD.
HE WASN'T LIKE THUMBING HIS NOSE
AT THE BOARD, WHAT HE DID IN
EARLIER VERSION.
HE IS MUCH BETTER SEASONED CEO.
THAT IS NOT ELON MUSK.
THAT IS ONE OF THE OTHER
PROBLEMS.
HARD TO GET RID OF ELON MUSK
THAN JOBS.
ELON MUSK OWNS 20% OF THE FIRM.
WILL YOU FIRE HIM?
>> RIGHT.
>> I DON'T THINK JOBS HAD THAT
MUCH CONTROL.
DAVID: IN THE WORDS OF YOUR
BUDDY, PRESIDENT DONALD TRUMP --