"In a comprehensive search in recent months, we have tried to add independent directors with skills that complement the experience of the current Board of Directors, and in Larry and Kathleen we have added an outstanding entrepreneur and human resources manager who are passionate about sustainable energy", Tesla's existing directors said in a statement.
Tesla's board of directors has historically been closely associated with its CEO and includes, among others, his brother Kimbal Musk. The agreement in the SEC agreement should provide for greater oversight by the CEO, who had pulled down the company's stock through its uncontrolled use of social media and other antics.
Existing board member Robyn Denholm was appointed chairman in November. Denholm was considered an experienced, if predictable, election at the time, but investors and analysts had hoped that a truly independent outside chairman would thoroughly examine Musk.
The two new board members should also be independent, but Ellison's personal relationships with Musk are cause for concern.
Meanwhile, longtime Tesla board member and venture capitalist Steve Jurvetson has been "on leave" from the board for over a year after reporting on his sexual misconduct. These reports meant that he was expelled from the eponymous venture company DFJ, which was responsible for both Tesla and Elon Musk's other company SpaceX.
Tesla is not only to appoint new board members, but also to set up a committee to oversee other conditions. The SEC ruling and the Institute oversee the company's statements and Elon Musk's on Tesla on Twitter and elsewhere.
Ellison and Wilson-Thompson have been on the Board of Directors since Thursday, Tesla said.
Correction: Larry Ellison and Kathleen Wilson-Thompson have been members of Tesla's Board since December 27, 201