Tesla's CFO Zach Kirkhorn's departure reason

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【Summary】Tesla's CFO, Zach Kirkhorn, has stepped down from his role, leaving the company with a surprise departure. The reason for his departure is unclear, but there are theories that he may be considering a CEO position elsewhere or that he believes his work at Tesla is done. Kirkhorn had played a key role in the company's turnaround and financial success. Tesla has appointed Vaibhav Taneja as the new CFO, in addition to his current role as chief accounting officer.

FutureCar Staff Aug 18, 2023 8:09 AM PT

Tesla's CFO Zach Kirkhorn's departure reason

Over the past few weeks, there have been several changes in CFO positions at major companies. The latest news comes from Tesla, where Zachary Kirkhorn, the CFO and "master of coin," has stepped down. This news has surprised many in the industry, with tech analyst Dan Ives describing it as a "big surprise to the Street."

In an SEC filing, Tesla announced the appointment of Vaibhav Taneja as the new CFO, in addition to his current role as chief accounting officer. The filing also highlighted Kirkhorn's contributions to the company's expansion and growth. Kirkhorn will remain at Tesla until the end of the year to support the transition.

The reasons for Kirkhorn's departure were not discussed in the filing. However, in a LinkedIn post, Kirkhorn expressed his pride in being a part of Tesla and thanked the employees and Elon Musk for their leadership and inspiration. Interestingly, the Wall Street Journal recently reported that Kirkhorn was being considered as a potential successor to Musk for the CEO position.

There are three theories as to why Kirkhorn has chosen to leave Tesla. One theory suggests that he believes the heavy lifting at Tesla has been done, as the company has achieved profitability and repaid a significant amount of debt under his tenure. Another theory is that Kirkhorn may be pursuing a CEO position elsewhere in 2024. Despite his departure being a blow in the near term, Tesla is confident in its strong bench of talent.

In other news, a new analysis by S&P Global Market Intelligence predicts that private equity portfolio companies in the U.S. may see the highest number of annual bankruptcy filings since 2010 by 2023. The report highlights that 338 U.S. companies, including 54 with private equity or venture capital backing, filed for bankruptcy protection in the first half of the year.

On a positive note, a report by Mercer reveals that the estimated aggregate funding level of pension plans sponsored by S&P 1500 companies increased by 2% in July 2023. This increase is attributed to growth in equity markets and discount rates.

There have also been changes in CFO positions at other companies. Tarek Robbiati has resigned as EVP and CFO at Hewlett Packard Enterprise to accept the CEO role at RingCentral, Inc. Jeremy Cox has been named interim CFO while HPE conducts a search for a new CFO. Additionally, Jochen Goetz, CFO at Daimler Truck Holding AG, tragically passed away in an accident. Goetz had been with the company for over 36 years and his death is described as a tremendous loss.

Finally, Zoom Video Communications announced that employees living within 50 miles of a Zoom office must work there at least two days a week. The company believes that this structured hybrid approach, with employees interacting with their teams in-person, is the most effective.