Tesla at a Crossroad: Board Ready to Replace Musk if Shareholders Reject His Trillion-Dollar Package

Tension is rising inside Tesla as the company braces for a pivotal shareholder vote on Elon Musk’s controversial $1 trillion compensation package. The board has confirmed it is ready to appoint a new CEO if Musk leaves or scales back his involvement.

Tesla Prepares a Plan B if Musk Walks Away Board Chair Robyn Denholm told Bloomberg that Tesla has identified internal candidates who could take over as CEO if shareholders vote against Musk’s proposal on November 6. “I’ve spoken to Elon directly. If this plan doesn’t pass, there’s a high likelihood that he’ll withdraw or become less involved with Tesla,” Denholm said. According to her, the company is prepared to ensure a “smooth transition,” with an internal successor as the most likely option — though the board hasn’t ruled out external candidates entirely.

Musk’s Trillion-Dollar Package Tied to Performance The proposed plan would give Musk around 25% voting control if Tesla meets specific growth milestones tied to expanding electric vehicles, robotics, and its robotaxi program. But the plan has divided investors. Two major advisory firms — ISS and Glass Lewis — have recommended voting against it. Denholm admitted that the outcome remains uncertain: “A large portion of our investors are passive funds that follow these firms’ recommendations. We have to be proactive and make our case directly to them.”

Tesla Launches an Unusual Campaign to Win Support To rally its unusually high 30% retail shareholder base, Tesla has launched a creative public campaign. Outside the Nasdaq building in New York, the company deployed its humanoid robot Optimus, who waved to passersby, handed out Tesla-branded gummy candies, and posed for photos. Videos of the scene quickly went viral, reminding the world that Tesla is more than just a carmaker — it’s a symbol of futuristic technology. Meanwhile, Denholm and other board members, including James Murdoch and Jack Hartung, met with major institutional investors like Vanguard, BlackRock, and State Street to secure their votes.

Possible Successors: Tesla’s Leadership Bench Is Deep Denholm insists Tesla is well-prepared for any outcome. The leading internal candidate appears to be Tom Zhu, who oversees global production and operations in China. “Tom has worked across multiple divisions and understands the company inside out,” Denholm said. Other options include splitting executive responsibilities among several leaders to maintain Tesla’s speed and agility. Tesla’s stock rose 2.9% in New York trading and is up 12% year-to-date, despite concerns about an aging vehicle lineup and Musk’s increasingly political behavior.

Tesla, xAI, and the Future Ahead The November meeting will also feature a non-binding vote on whether Tesla should invest in Musk’s AI startup, xAI. Denholm clarified that Tesla has not yet invested in xAI: “The technologies developed at xAI differ from Tesla’s current focus. But if shareholders approve the idea, we’ll initiate a related-party transaction review before any investment is made.”

Key Date: November 6 The final vote will take place on November 6 at Tesla’s annual shareholder meeting. Whatever the outcome, it will have profound consequences for both Tesla and Musk’s broader empire, including SpaceX, xAI, and beyond. If shareholders reject the package, Tesla could face its biggest leadership transition in over a decade — and the world will be watching to see whether the company is truly ready for life after Elon Musk.

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