Will James Murdoch replace Elon Musk as Tesla chairman?

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Tesla and Musk reached a settlement last month with US Securities and Exchange regulators, in which they agreed to pay $ 20 million each to financial regulators.

Outgoing Twenty-First Century Fox Inc. CEO James Murdoch is the main candidate to replace Elon Musk as chairman of Tesla Inc., reports the Financial Times Wednesday, which mentions two people who have been informed about the discussions.

Tesla and Musk reached a settlement last month with US Securities and Exchange regulators, in which they agreed to pay $ 20 million each to financial regulators and that the billionaire would resign as chairman, but remain CEO.

Murdoch, a non-executive director of Tesla, had indicated that he wants to do the job, the report said.

The son of Fox mogul Rupert Murdoch, joined the board of Tesla last year after years of collaboration with media companies. He has never led a car company.

In May, proxy advisors Glass Lewis & Co and Institutional Shareholder Services and activist investor CtW Investment oppose the re-election of Murdoch on the board of Tesla.

While the latter mentioned a lack of relevant experience and a "troubled history as executive and director," Glass Lewis warned that Murdoch had already been serving too much.

According to the FT report, external options were still being considered.

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Murdoch will be succeeded by his brother Lachlan Murdoch as Twenty First Century Fox CEO, after the media group has completed the sale of a large part of his assets to Walt Disney.

Murdoch could not be reached immediately for comment. Tesla did not respond immediately to a request for comment. Twenty-First Century Fox declined to comment.

Musk has 45 days to step down as chairman of Tesla under the SEC scheme and may not be re-elected for three years. Tesla must also appoint two new independent directors on its board of directors.

With US stock markets generally lower, Tesla's shares fell by 2.05 percent to $ 257.40 as of 3.20. ET.