Tesla chair warns Musk could leave if $1t pay plan fails

Tesla chair Robyn Denholm has warned that CEO Elon Musk could leave Tesla as CEO if shareholders do not approve his proposed US$1 trillion pay package.

The comments were made in a letter to shareholders ahead of Tesla’s annual meeting on November 6, 2025.

The pay plan would grant Musk 12 tranches of stock options based on targets like an US$8.5 trillion market cap, and milestones in autonomous driving and robotics.

Denholm said the package is intended to keep Musk leading Tesla for at least another seven-and-a-half years.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Musk’s departure risk hinges on proxy advisors and major shareholders’ voting intentions

Whether Musk leaves depends on the November 6 vote on his proposed US$1 trillion pay deal. Approval odds rest on proxy advisors (firms that guide institutional investors on voting) and on stated plans from top holders.
ISS (Institutional Shareholder Services) plus Glass Lewis have urged a no vote 1 2. They oppose it because of the size of the award and dilution risk.
The State Board of Administration of Florida (the manager of the state’s public investment funds) backs the plan because of Tesla’s stock returns and Musk’s record 3.
Retail traders (individual investors) hold about 30% of the shares and posted a record turnout last year 4. The outcome is uncertain despite opposition from proxy firms.

Recent safety data and AI program changes to watch

Tesla’s Autopilot is the driver-assistance system. Company data says it regressed in 2025 with fewer miles between crashes than in 2024 5.
Tesla shut down its Dojo supercomputer project in August 2025, per Bloomberg 6. The in-house system trained AI models for autonomy and robotics.
Musk wants stronger voting influence to keep pushing Optimus (Tesla’s humanoid robot initiative) and autonomy (self-driving technology) 4 2. He said he does not feel comfortable building a robot army without it 4 2.