Aussie Telstra exec to replace Elon Musk as Tesla chairman

Tesla has announced Elon Musk has formally stepped down as chair of its board of directors and been replaced by Telstra exec, Australian Robyn Denholm.

Denholm, who is currently the chief financial officer and head of strategy at the Australian telco company, will assume the role of Tesla chairman immediately, before stepping down from her Telstra roles when her six-month notice period is complete.

Musk, who remains Tesla's chief executive, was forced to step down as chair as part of a $20 million ($A27m) settlement with the American Securities and Exchange Commission (SEC) over charges of securities fraud after tweeting he was about to take the pure-electric-car maker private.

Denholm, who has previously worked for Toyota and a number of Silicon Valley companies, already had a relationship with Tesla before landing the top job. She has been one of two women on the car-maker's nine-member board since 2014, and is currently the chair of the company's audit committee.

"I believe in this company, I believe in its mission and I look forward to helping Elon and the Tesla team achieve sustainable profitability and drive long-term shareholder value," said Denholm after the announcement.

The appointment sees an end to Musk's 14-year spell as chairman. The outspoken and controversial Tesla founder took the reins back in 2004 when he led a $7.4 million ($A10.3m) investment in the car-maker that kickstarted production of its first model.

Analysts have cautiously welcomed Denholm to the role, but some warn that the choice of a trusted Tesla insider as its new chairman could mean the new Australian might have little influence controlling her CEO.

In the past Tesla's board has also drawn heavy criticism for lack of corporate governance, lacking independence and being made up of Musk devotees, like Elon's own brother Kimbal.

Others highlight Denholm's tenure might be short-lived.

Musk's settlement with the SEC to deflect fraud charges bans him from serving as chair only for three years.

Denholm's role will be propped up by another independent director, with the Tesla board announcing that it is continuing its search for a suitable candidate.

As well as being caught by the US financial regulator, Musk recently has been embroiled in other high-profile scandals, one involving using Twitter to call a British driver rescuing trapped children in a Thai cave a 'pedo'. The South African-born CEO also courted controversy when he smoked cannabis while live on a radio show.

Despite the controversy, Tesla turned a profit of $312 million ($A428m) in the third quarter, well ahead of market expectations. More good news for the US car-maker is the recently launched Model 3 is currently the fifth best-selling passenger car in the US.

Unfortunately for Musk, his legal difficulties are far from over. It's been reported that the US Department of Justice is analysing Musk's tweet about taking his company private to see if there are grounds for a criminal conviction.

The SEC, meanwhile, has announced it is continuing its investigation over Tesla's production goal claims.