Tesla Board Prepares for Leadership Transition Amid Musk Compensation Dispute

Tesla's board has signaled readiness to appoint a new CEO should Elon Musk reduce his involvement over a rejected $1 trillion compensation package. Chair Robyn Denholm confirmed internal succession as the preferred path, though external candidates remain a possibility. The proposed pay plan WOULD grant Musk 25% voting control upon achieving ambitious growth targets tied to Tesla's market valuation, spanning electric vehicles, robotics, and autonomous taxi development.

Musk has explicitly linked his continued Tesla engagement to approval of this compensation structure, threatening to prioritize his other ventures like SpaceX and xAI. "There's no question in my mind that if we don't get this across, there is a high probability he would back away," Denholm stated, revealing direct discussions with the mercurial CEO. The shareholder vote, scheduled for November 6, faces uncertainty due to Tesla's unusually high retail investor base (30%), prompting an aggressive board outreach campaign.