Tesla Prepares for Potential Leadership Transition as Musk’s Pay Package Hangs in Balance

Tesla's board is bracing for a potential leadership shift as shareholders prepare to vote on Elon Musk's controversial $1 trillion compensation package. Chair Robyn Denholm confirmed the company WOULD likely promote an internal successor if Musk reduces his involvement, though external candidates remain possible. The proposed deal—tying Musk's 25% stake to ambitious performance targets across Tesla's automotive, robotaxi, and robotics divisions—has become a lightning rod for investor dissent.

Proxy advisers ISS and Glass Lewis have recommended rejecting the package, amplifying pressure as institutional and retail investors (30% of Tesla's ownership base) weigh their votes ahead of the November 6 decision. Musk has signaled he may prioritize SpaceX and xAI should the proposal fail, prompting Tesla's leadership to aggressively lobby stakeholders. "This isn't about compensation—it's about retaining Elon's focus," Denholm emphasized during investor meetings last week.