Elon Musk May Quit as Tesla CEO if $1 Trillion Pay Deal Rejected

Tesla Chairperson Robyn Denholm has warned that CEO Elon Musk could leave the company if shareholders do not approve a proposed $1 trillion performance-based compensation package.

In a letter to shareholders on Monday, Denholm said the package was designed to keep Musk motivated to lead Tesla for at least seven and a half more years.

She emphasized that Musk’s leadership, vision, and innovation are crucial to Tesla’s continued success — particularly as the company seeks to dominate global markets in artificial intelligence (AI) and autonomous technology.

The proposed plan includes 12 tranches of stock options linked to major milestones, including an $8.5 trillion market valuation, and progress in robotics and self-driving technologies.

Denholm urged shareholders to support the compensation plan and to re-elect three directors who have long worked alongside Musk.

Earlier this year, a Delaware court struck down Musk’s 2018 pay package, ruling it had been improperly approved by non-independent board members.