[News Figures] The Quiet Leadership of 'Jac Kirkhorn' Discussed as Tesla's Successor CEO

Narrowing the Gap Between Musk and Employees
Key Executive but Not Well-Known

A figure who is being mentioned as the successor to Elon Musk, CEO of Tesla, which is gaining global attention, is emerging as a hot topic. The protagonist is Zach Kirkhorn, Chief Financial Officer (CFO), who is not well known to the public but is evaluated to exert quiet yet powerful influence within Tesla.

Jac Kirkhorn, Tesla Chief Financial Officer (CFO) (Photo by himself on SNS)

In January 2019, when Elon Musk, Tesla's CEO, appointed Vice President Kirkhorn as the next CFO, he was completely unknown at the time. So much so that Tesla's stock price plummeted more than 5% upon his appointment. The stock price was shaken by the appearance of someone who was not widely known even on Wall Street.

Even now, CFO Kirkhorn is a figure who draws attention every time Tesla announces its earnings, but he is still considered a mysterious figure with little connection to Wall Street financiers and few publicly known details.

However, it is known that his influence within Tesla is considerable. The Wall Street Journal (WSJ) reported on the 11th (local time) that although CFO Kirkhorn is not well known externally, internally he plays a major role in bridging the gap between employees and CEO Musk by accurately understanding Musk's demands.

WSJ cited sources saying that Tesla's board has already discussed CFO Kirkhorn as Musk's successor. A source who worked as an executive at Tesla said that although there is no clear second-in-command within Tesla, CFO Kirkhorn handles daily operations like a Chief Operating Officer (COO), conveying the atmosphere.

Born in 1984, he joined Tesla in 2010, was promoted to Vice President of Finance in December 2018, and was promoted to CFO in March 2019, just four months later, a role he holds to this day. CFO Kirkhorn double-majored in engineering and economics at the University of Pennsylvania, the same university Musk attended. He later graduated from Harvard Business School. After an eight-month internship at Microsoft (MS) in 2005, he worked as an analyst at global consulting firm McKinsey in 2007.

CFO Kirkhorn is regarded as a key figure in improving Tesla's profitability. He sought ways to reduce production costs and increase efficiency, and under his tenure as CFO, Tesla posted profits for 15 consecutive quarters. Last year, the operating profit margin was 16.8%, significantly surpassing that of other American automakers, WSJ explained. During Kirkhorn's tenure as CFO, the company's market capitalization soared from $50 billion to $500 billion.

In March, CFO Kirkhorn emphasized the importance of cost reduction at an event held at Tesla's factory in Texas, USA.

Elon Musk Tesla CEO [Photo by Reuters]

JB Straubel, Tesla's co-founder and former Chief Technology Officer (CTO), recently nominated as a new board candidate, praised CFO Kirkhorn's ability to solve difficult and complex problems. When Tesla was preparing for Model 3 production in 2014, Kirkhorn reportedly faithfully reflected Musk's demands in the contract during negotiations with Panasonic for the battery factory construction.

Also, when Tesla was considering whether to secure certain parts from suppliers or produce them internally during car production, multiple sources said CFO Kirkhorn's financial analysis played an important role in persuading employees.

CFO Kirkhorn's true value lies in his communication skills. Sources who worked with him noted that he communicates well with CEO Musk, despite their 13-year age difference. Many executives found it difficult to accept the 'eccentric' Musk's demands, but CFO Kirkhorn is praised for interpreting them well and having the ability to finely adjust even those demands that might seem unreasonable by breaking them down in detail.

WSJ compared the relationship between CEO Musk and CFO Kirkhorn to that of Apple's founder Steve Jobs and current CEO Tim Cook.

Board candidate Straubel explained that CFO Kirkhorn has an attitude of delivering bad news bigger and faster than good news, which was a point of trust from Musk. He also evaluated that because Kirkhorn understands everything inside and outside the company?from technology to employees?so precisely, people might fear him.