News > Financial Services

Larry Ellison is Now the Second-Biggest Tesla Shareholder After Elon Musk

By NexChange
Financial Services

Less than two weeks after he was named to Tesla’s board of directors, Oracle Corp. founder Larry Ellison has become the second-biggest individual shareholder in the company after Elon Musk, as Bloomberg reports.

Ellison revealed a $1 billion stake in Tesla as part of a regulatory filing on Tuesday. According to the filing, Ellison owns 3 million Tesla shares through the Lawrence J. Ellison Revocable Trust.

Ellison now has a 1.75 percent stake in Tesla, according to Bloomberg. Musk owns a fifth of the company he founded.

As part of a $20-million settlement with the Securities and Exchange Commission, Tesla was ordered to assign two independent directors to its board. The company announced on Dec. 28 that it had appointed Ellison and and Kathleen Wilson-Thompson, a global human resources specialist who currently serves as executive vice president and global chief human resources officer of Walgreens Boots Alliance.

However, it’s unclear how “independent” Ellison actually is since, as Bloomberg notes, he hasn’t been shy about his friendship with Musk.

Ellison is the world’s ninth-richest person with a net worth of $51.4 billion, according to the Bloomberg Billionaires Index. He went off-script during an Oracle meeting with analysts in October to announce that he had been building a personal stake in Tesla and that it was his second-largest holding. He criticized how the news media had covered Musk, whom he lauded for landing rockets and called a close friend.

According to the terms of its settlement with the S.E.C., Musk will not be allowed to serve as chairman of Tesla’s board for at least three years. The regulator had sued Musk and Tesla for making “false and misleading public statements and omissions” that harmed investors and “caused significant confusion and disruption in the market for Tesla’s stock.”

The lawsuit stemmed from Musk’s infamous tweet expressing his desire to take Tesla private.

Photo: Getty iStock

Subscribe to our Newsletter

Be one of the first to experience the future of financial services