The electric vehicle maker has announced that Robyn Denholm, who has been an independent director at the business since 2014, will step up to become chairman with immediate effect.
The appointment of Denholm, who is Telstra's chief financial officer, is effective immediately but she will serve out her six-month notice period with her current employer, Tesla said in a statement late Wednesday.
She will temporarily step down as Chair of Tesla's Audit Committee until she leaves Telstra, the company said.
A corporate governance expert questioned whether Denholm is the right person for the job, given that she was a member of Tesla's board for four years yet failed to rein in the visionary yet erratic Musk.
Tesla has weathered a rocky few months in the wake of Mr Musk's tweets that he had "funding secured" for a deal, later scuttled, to take Tesla private. Tesla is searching for two more independent directors.
Musk will help ease the new board director´s transition, Tesla said.
Tesla has announced a new chair of its board of directors: Robyn Denholm.
Musk had to step aside as chairman for three years and was also fined, but was able to remain Tesla's CEO.
Aside from her work at Telstra, she has also spent time at technology majors including Juniper Networks and Sun Microsystems. Musk's brother, Kimbal, is one of the members.
The company had until next week to name the new chairman. Tesla has to employ or designate a securities lawyer to review messages that senior officers send through Twitter and other social media. It was only the third time that Tesla has posted a quarterly profit in its eight-year history as a public company and the first time in two years.
The appointment of Denholm caps months of turbulence for Tesla amid investor demands for stronger oversight.
That alluded to shortsellers, investors who have bet that Tesla shares will fall and who are frequently the subject of Musk´s derision.