Tesla becomes good without Elon Musk as CEO: shareholder

Tesla's largest outside shareholder believes that the car manufacturer will be fine if the Securities and Exchange Commission decides to divert Elon Musk from his role as CEO.

"We wouldn't be against him who had a different role" Baillie Gifford's global shareholder James Anderson said in an interview.

"I don't think he needs to be CEO," Anderson told Barron, saying the billionaire inventor could take a "chief ideologue" position.

Anderson & # 39; s company owns a 7.7 percent stake in the electric car company worth over $ 3.5 billion. Only Musk owns more, with a share of almost 20 percent.

Last week, the SEC demands that Musk be disdained for the court of a February 1[ads1]9 tweet if the Tesla production number that the watchdog is considered misleading.

The action ordered a federal judge to claim Musk explain himself by March 11.

The judge is tasked with monitoring a settlement Musk inked with the SEC last year over an August tweet suggesting that he had "funding secured" to take Tesla privately. There was no such funding.

The SEC agreement has given Musk the opportunity to avoid being removed as the CEO by stepping down from his presidency and accepting approval from company lawyers before sending Tesla-related tweets.

Musk's possible future role at Tesla comes as the car manufacturer's stock continues to push for the announcement of a $ 35,000 model 3 last week.

Shares in Tesla were down 3 percent on Tuesday, and have gone more than 14 percent since last Thursday's price decline.

The stock took a hit on Tuesday after Barclays reduced its price target to $ 192 – the lowest on the street – in a note that Tesla's price cuts and store closures have tarnished their image as Apple by car manufacturers.

"Much of the bull's tale has been that Tesla is the next Apple, which sells volume EV's … at high gross margins, partly backed by a unique branded retail presence – a story we see as undermined by the latest price supplements, says analysts Brian Johnson and Steven Hempel in their research note.

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