Tesla names Indian-American DU graduate Vaibhav Taneja as CFO after Zachary Kirkhorn steps down

Tesla's Chief Financial Officer (CFO), Zachary Kirkhorn, has taken an unexpected step down from his position, surprising industry analysts who had considered him a potential successor to the company's CEO, Elon Musk. The announcement led to a 1 per cent decline in Tesla's stock after trading hours.

The departure of Kirkhorn from the electric vehicle manufacturer has left a void and raised questions about the company's succession plan. While the exact reasons for his exit remain undisclosed, the move has sparked concerns about the leadership structure at the helm of the world's most valuable automaker. This is particularly noteworthy as Elon Musk, the current CEO, is also juggling key roles at other major ventures such as SpaceX and X social media, formerly known as Twitter.

Kirkhorn's role as CFO was often seen as a stabilising force, counterbalancing the more volatile Musk. He was a prominent figure within Tesla, frequently engaging with analysts on conference calls and delivering presentations on strategic initiatives and product developments. Under Kirkhorn's guidance, Tesla achieved significant milestones, including its first-ever quarterly profit following the successful launch of the mass-market Model 3 compact sedan. During his tenure, the company's market valuation also soared past the remarkable milestone of $1 trillion.

In a LinkedIn post, Kirkhorn expressed his pride in the accomplishments made during his 13-year tenure at Tesla. He stated, "Being a part of this company is a special experience and I'm extremely proud of the work we've done together since I joined over 13 years ago."

Kirkhorn's departure marks the most significant leadership shake-up at Tesla since the departure of long-time executive Jerome Guillen, who was responsible for overseeing the development of the company's semi-electric trucks, in 2021.

Elon Musk extended his gratitude to Zach Kirkhorn for his contributions to Tesla over the years. In a post on X, Musk stated, "I would like to thank Zach Kirkhorn for his many contributions to Tesla over the course of 13 often difficult years. Much appreciated and best wishes for the next stage of his career."

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Who is the new CFO?

Taking over the CFO role is Vaibhav Taneja, who previously served as the company's chief accounting officer. Taneja's appointment comes in addition to his current responsibilities, effectively granting him the title of "Master of Coin." 

He is a commerce graduate from Delhi University.

Before joining Tesla, Taneja held a significant role at PricewaterhouseCoopers, a leading global accounting firm, for nearly 17 years. He joined Tesla in 2016 through the company's acquisition of SolarCity, a solar panel manufacturer, in a deal valued at $2.6 billion.

Tesla, headquartered in Austin, Texas, has recently made strategic moves to stimulate sales growth and expand its market share. The company slashed the prices of its vehicles, although this decision led to pressure on its industry-leading profit margins. Moreover, in response to increasing borrowing costs impacting the electric vehicle market, Musk indicated that further price cuts may be necessary during what he described as "turbulent times."

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