Tesla’s finance chief, Zachary Kirkhorn, has announced his departure after four years in the role, according to the world’s most valuable automaker. The company has named Vaibhav Taneja, the current accounting head, as his replacement. This news caused Tesla’s shares to decrease by over 3% on Monday.
The reason for Kirkhorn’s departure was not specified by the Elon Musk-led firm. Kirkhorn, who has been with Tesla for 13 years, will continue to work with the company until the end of the year to ensure a seamless transition.
During Kirkhorn’s tenure, Tesla achieved its first quarterly profit with the successful launch of the Model 3 compact sedan, resulting in a market valuation surpassing $1 trillion.
Kirkhorn’s appointment in 2019 and the departure of his predecessor, Deepak Ahuja, were unexpected announcements made by Musk during a conference call discussing the company’s quarterly results.
“Being a part of this company is a unique experience, and I am incredibly proud of the work we have accomplished together since I joined over 13 years ago,” Kirkhorn stated in a LinkedIn post.
Kirkhorn did not respond immediately to queries on LinkedIn.
“The fact that he will remain with the company until the end of the year indicates that his departure is due to personal reasons. It is likely that working with Elon Musk, which is known to be challenging, has taken its toll after 13 years,” said Gene Munster, managing partner at Deepwater Asset Management.
Taneja, aged 45, joined Tesla after the company acquired SolarCity in 2016. In addition to his role as the chief accounting officer, he will now assume the position of “Master of Coin,” as announced by the automaker.
This year, the automaker based in Austin, Texas, reduced the prices of its cars in order to prioritize sales growth and market share, which impacted its industry-leading profit margins.
Tesla has also hinted at the possibility of further price cuts, as rising borrowing costs have negatively affected sales for electric-vehicle manufacturers, as stated by Musk during “turbulent times.”
Earlier this year, the Wall Street Journal reported that outgoing CFO Kirkhorn was being considered as a potential successor to Musk, highlighting investor concerns about the absence of a clear succession plan.
Musk currently holds leadership positions in SpaceX, Neuralink, the Boring Company, and serves as the chief technology officer of X, formerly known as Twitter.
© Thomson Reuters 2023
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