Tesla Inc. is undoubtedly one of the fastest growing companies in the world due to such popularity; it has always been in the news. However, new reports are stating that company has decided to reduce its board of directors from 11 to 7 for better decision making. Four of its board members will be leaving their positions in next two years which will make Tesla a company with seven directors. Brad Buss, Antonio Gracias, Stephen Jurvetson, and Linda Johnson Rice have decided not to conduct re-election in the upcoming stakeholders meeting which means these guys are going to say bye to Tesla’s board of directors.
The company said one of the primary reasons why they have decided to take this decision is because a smaller number of board of directors will help to make efficient decisions. Tesla said that this decision hadn’t been taken out of any disagreement between the board of directors. Instead, all of them have agreed to take this step since it will be more beneficial for the company. All of these four directors have agreed to sign a nondisclosure agreement with company under which they will not be allowed to discuss company’s plans for the future. Brad Buss who is leaving his position was served as chief financial officer of the company, and he was a founder of SolarCity which had been bought by Tesla in 2016.
Now some experts are worried about this decision because according to them it’s not easy to replace such type of talented people because all of them knew the business of Tesla perfectly. However, to survive in the long term, Tesla had to take this step even that might hurt some of its investors who are profoundly worrying about share prices of Tesla. Tesla has already gone through lots of controversial problems; also it will be interesting to see how people are going to react to this decision.