The future of Tesla is hanging in a delicate balance, as the company’s chairperson has issued a stark warning to shareholders: Elon Musk may step down as CEO if his proposed, unprecedented one-trillion-dollar pay package is not approved.
In a letter sent on Monday, Chairwoman Robyn Denholm expressed deep concern, stating that retaining Musk’s “time, talent, and vision” is absolutely critical to Tesla’s continued success.
She clarified that this performance-based package was designed specifically to keep Musk motivated and committed to leading Tesla for at least the next seven and a half years.
This warning comes at a pivotal moment, as Tesla is intensely focused on achieving global leadership in artificial intelligence (AI) and autonomous technology. According to Denholm, Musk’s leadership is indispensable in this high-stakes race.
The proposed package would grant Musk 12 tranches of stock options, all tied to monumental goals. These include increasing Tesla’s market value to $8.5 trillion and achieving breakthroughs in autonomous vehicles and robotics.
Denholm urged shareholders to approve the package and also to re-elect three directors who have long worked alongside Musk.
This move follows a major setback earlier, when a Delaware court voided Musk’s 2018 pay package, ruling that it had been improperly set by directors who were not independent.
