Catenaa, Monday, October 27, 2025- Elon Musk could leave Tesla if shareholders don’t approve the $1 trillion pay package at the upcoming annual meetings.
Tesla Board Chair Robyn Denholm, in a letter Monday, said Musk was key to the future of the EV maker as it moves beyond being “just another car company,” with a bigger focus on Full Self Driving and Optimus.
“Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aim to become,” Denholm wrote.
Denholm told CNBC’s “Squawk Box” on Monday that the company is at an “important inflection point” with artificial intelligence at the forefront.
“The opportunity for Tesla in the future, given this AI focus and attention and the unique capabilities that we have as an organization, and that Elon brings to us, really does mean that the opportunity for the company ahead of us is significant,” she said.
Several groups have publicly opposed the pay package in recent days, with proxy advisor Institutional Shareholder Services recommending against it.
Last week, a group of unions and corporate watchdogs launched the Take Back Tesla website to oppose the pay package, noting Musk’s embracing of right-wing political movements and amplifying of conspiracy theories that have damaged the brand.
Tesla reported third-quarter financials last week, missing earnings expectations but posting a 12% increase in revenue after two straight periods of declines.
The proposed plan for Musk, which was outlined by the board in September, consists of 12 tranches of shares granted to Musk if Tesla hits certain milestones.
It would also give Musk increased voting power over the company, which he has publicly demanded for the past year and mentioned again on Tesla’s earnings call last week in reference to the growth of Optimus robots.
The full award would give Musk, who already holds about 13% of the EV maker, more than 423 million additional shares and take his stake to about 25%.
