Murdoch is reported in line for Tesla chair, Musk replies incorrect

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Outgoing Twenty-First Century Fox Inc Chief Executive James Murdoch is the lead candidate to replace Elon Musk as Tesla Inc chairman, the Financial Times reported on Wednesday, but Musk in a tweeted reply to the newspaper said, "This is incorrect."

Tesla has until Saturday to appoint an independent chairman of the board, part of settlements reached last month between Tesla, Musk and US regulators in the wake of Musk tweeting in August that he had secured funding to take the electric car maker private.

The Securities and Exchange Commission (SEC) settlement capped months of debate and some investor calls for stronger oversight of Musk, whose recent erratic public behavior raised concerns about his ability to steer the money-losing company through a rocky phase of growth.

The SEC, which said Musk's tweeted statements about going private were fraudulent, allowed the billionaire to retain his role as CEO while requiring he give up his chairmanship.

Musk had said he was considering taking Tesla private at a price of 420 US dollars per share, a number that is slang for marijuana.

In a vote of confidence for Musk, shareholder T Rowe Price Group Inc said in a regulatory filing on Wednesday that it had raised its stake by nearly half to 10.2 percent at the end of September from just under seven percent in June.

The son of Fox mogul Rupert Murdoch, James Murdoch joined Tesla's board last year after years of work with media companies. He has no experience in manufacturing and has never led a company that makes cars or electric vehicles.

Source(s): Reuters