Photo: Duke University's Fuqua School of Business
An interesting report from China claims Elon Musk has agreed to step down as Tesla CEO and to promote Tom Zhu Xiaotong, the President of Tesla China, as his successor. The information has not been officially confirmed by Tesla.
Tesla critics have been offered plenty of ammunition lately after Elon Musk entangled himself in the Twitter deal. Micromanaging the social media platform and engaging in quarrels with people over mundane issues seem to keep Tesla’s CEO busy most of the time. Many investors claim that this has led him to lose sight of the company, while his erratic behavior has hurt Tesla’s business. Indeed, Tesla shares have slipped to a two-year low in the past weeks, fueled by Musk’s questionable tweets and stock sell-outs to finance his Twitter fantasy.
At a November hearing during a trial over Elon Musk’s pay package, James Murdoch, a Tesla executive, testified that Elon Musk has already identified a potential successor. Murdoch did not offer more details about who that person might be, but this seems to corroborate Musk’s previous statements about hating doing management stuff. “I tried not to be CEO of Tesla, but I had to, or it would die. I rather hate being a boss. I’m an engineer,” he said last year while testifying about Tesla’s SolarCity acquisition.
Now, a report by the Chinese outlet PingWest claims that Elon Musk’s successor could be Tom Zhu Xiaotong, the President of Tesla China. According to the report, Zhu’s new position would not entail robots and automation for vehicles but rather will focus on automobiles. Tom Zhu had a fulminant career at Tesla China, starting as the director of Tesla’s Supercharger program in China in April 2014. Eight months later, he was promoted as Tesla’s Global Vice President and President of China.
Zhu is credited with the stellar performance of Tesla in China. He oversaw the establishment of Tesla Service Centers, the introduction of new vehicles into China, and the development of the Giga Shanghai. This is now Tesla’s main production hub, with more than 100,000 vehicles delivered in November.
The PingWest report is bizarre, considering it comes right after the outlet lost a fake news lawsuit to Tesla. According to Electrek, Tesla filed the case after PingWest wrote an article last year about quality problems at Tesla’s gigafactory. The report also emphasized poor working conditions and questionable sales tactics. Tesla sued the publication and, more than a year later, won the case against PingWest in front of the Shanghai Pudong New Area People’s Court.
While we should always take news like this with a grain of salt, we must admit that Tom Zhu is probably a very competent manager. If Elon Musk is indeed looking to find a successor, the Chinese executive stands out through his achievements. Let’s not forget, though, that he might have a tough time adjusting to the western culture. Moreover, what works in China might never work in a highly regulated market like the U.S. or Europe.
At a November hearing during a trial over Elon Musk’s pay package, James Murdoch, a Tesla executive, testified that Elon Musk has already identified a potential successor. Murdoch did not offer more details about who that person might be, but this seems to corroborate Musk’s previous statements about hating doing management stuff. “I tried not to be CEO of Tesla, but I had to, or it would die. I rather hate being a boss. I’m an engineer,” he said last year while testifying about Tesla’s SolarCity acquisition.
Now, a report by the Chinese outlet PingWest claims that Elon Musk’s successor could be Tom Zhu Xiaotong, the President of Tesla China. According to the report, Zhu’s new position would not entail robots and automation for vehicles but rather will focus on automobiles. Tom Zhu had a fulminant career at Tesla China, starting as the director of Tesla’s Supercharger program in China in April 2014. Eight months later, he was promoted as Tesla’s Global Vice President and President of China.
Zhu is credited with the stellar performance of Tesla in China. He oversaw the establishment of Tesla Service Centers, the introduction of new vehicles into China, and the development of the Giga Shanghai. This is now Tesla’s main production hub, with more than 100,000 vehicles delivered in November.
The PingWest report is bizarre, considering it comes right after the outlet lost a fake news lawsuit to Tesla. According to Electrek, Tesla filed the case after PingWest wrote an article last year about quality problems at Tesla’s gigafactory. The report also emphasized poor working conditions and questionable sales tactics. Tesla sued the publication and, more than a year later, won the case against PingWest in front of the Shanghai Pudong New Area People’s Court.
While we should always take news like this with a grain of salt, we must admit that Tom Zhu is probably a very competent manager. If Elon Musk is indeed looking to find a successor, the Chinese executive stands out through his achievements. Let’s not forget, though, that he might have a tough time adjusting to the western culture. Moreover, what works in China might never work in a highly regulated market like the U.S. or Europe.
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