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CFO’s retirement trigger decline in Tesla shares

CFO's retirement trigger decline in Tesla shares

Tesla CFO, Deepak Ahuja, is leaving the company after serving the automaker for 11 years. The news brought about negative investor sentiment for Tesla stock. The shares which were trading around $300 fell to trade around $290, registering a 5% drop in prices when the market closed on Wednesday.

Zack Kirkhorn will replace Ahuja as the CFO of the company. Kirkhorn previously served as the vice president of finance at Tesla. “I feel really good about Zach taking over. He’s proven himself over the years with many tough challenges he’s worked on,” said Ahuja, according to a CNBC report.

“I’ve been deep in the operations of every major program of the company from Roadster to…scaling our energy business and more things to come. I feel we’re starting 2019 with a very strong financial foundation. We have enough cash to start new programs and develop new technologies,” said Kirkhorn.

Tesla’s finance team has a high churn rate according to the CNBC report.

On Wednesday at the fourth quarter earnings call of Tesla, Elon Musk, the Tesla CEO, said that Ahuja will continue at the company for a few more months. He added that Ahuja will serve as the senior adviser to the firm in the future.

The electric car maker recently downsized the company to boost the production of Model 3 cars. He automaker has boasted strong demand for its model 3 cars. The company is amid severe cost-cutting programs. The electric car maker is also shutting down the long-standing customer referral program.

Image via Shutterstock

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