Tesla’s Financial Maverick

Zach Kirkhorn.

This guy is stepping down as the chief financial officer of Tesla, Inc.

Usually when a CFO steps down, it’s not exactly front-page news. But Kirkhorn isn’t just any CFO. Tesla was valued at a substantial $50 billion when he took the CFO job in 2019. Today, that valuation has skyrocketed to an astonishing $773 billion.

In fact, some have said that because Musk has his heart in many places, Kirkhorn is the real engine behind Tesla. Rumors even swirled earlier this year that the 39-year-old wunderkind could step into Musk’s shoes as the next CEO.

Kirkhorn’s academic journey is as diverse as his achievements. Between 2002 and 2006, he delved into Economics at The Wharton School while simultaneously immersing himself in Mechanical Engineering and Applied Mechanics at the University of Pennsylvania.

Before Kirkhorn’s CFO tenure, Tesla grappled with a history of financial setbacks, at times hemorrhaging over $1 billion in cash every quarter. With Kirkhorn at the financial helm — lovingly dubbed the ‘Master of Coin’ a la Game of Thrones — Tesla pivoted towards profitability, a feat that seemed unattainable before his arrival. Over the past three years, the company repaid an impressive $10 billion of its debt.

And he is leaving a wealthy man — leaving with the proverbial golden parachute. Upon stepping into the CFO role in March 2019, he was granted a stock option worth $12 million, complemented by a restricted stock unit grant of $4 million. These awards unfold over a four-year period, aligning with Tesla’s equity guidelines. His annual salary for 2019 clocked in at $276k, but his total compensation, including incentives, surged to an eye-watering $21 million. The following year, 2020, saw his salary at $269k, and his total compensation snowballed to a staggering $46 million.

Zach’s journey began with an internship at Microsoft, sandwiched between his studies from 2005 to 2006. Graduating in 2006, he embarked on a career trajectory that led him to the consulting powerhouse McKinsey as a senior business analyst. By 2010, Tesla beckoned, and he joined as a senior finance analyst. An upward trajectory ensued — director of finance by December 2014 and vice president of finance by December 2018. On January 30, 2019, the torch passed from Deepak Ahuja to Zach, making him Tesla’s new CFO.

News of Kirkhorn’s departure sent Tesla shares down nearly 3% on a Monday morning. However, pundits suggest this may not be the last we see of Zach. Their prediction? Come 2024, he’ll likely ascend to the helm as CEO of another prominent entity.