Elon Musk May Quit Tesla if $1 Trillion Pay Plan Fails

Tesla Chair Robyn Denholm has warned investors that Elon Musk could step away from Tesla if his proposed $1 trillion performance-based compensation plan is rejected at the upcoming shareholder meeting.

In a letter sent Monday, Denholm said Musk’s leadership remains essential to Tesla’s growth and that the plan is designed to secure his long-term commitment as the company scales its artificial intelligence and autonomous driving operations.

“If we do not secure Elon’s commitment through this plan, we risk losing his time, talent, and vision,” Denholm wrote.

The vote will take place at Tesla’s annual shareholder meeting on November 6, a pivotal event for both Musk’s future and the company’s governance.

New Pay Package Tied to $8.5 Trillion Valuation Goal

Under the proposed plan, Musk would receive 12 tranches of stock options if Tesla hits specific milestones — including a market capitalization target of $8.5 trillion and major advancements in AI, robotics, and autonomous technology.

Denholm said the plan’s structure ensures Musk’s compensation depends on Tesla’s long-term performance and that it aligns his incentives with shareholders’ interests.

She added that Musk’s involvement is vital as Tesla transitions from an electric vehicle manufacturer into a broader AI-driven technology company.

Tesla Board Under Pressure After Court Ruling

Tesla’s board is again under pressure to prove it can operate independently of Elon Musk. Earlier this year, a Delaware judge voided Musk’s 2018 compensation plan, ruling that the deal was approved by directors too closely tied to him.

In response, Chair Robyn Denholm said the revised pay proposal was built under stricter oversight and clearer performance criteria. She added that the board followed a formal review process to avoid past missteps while keeping Musk focused on Tesla’s next stage of expansion.

Tesla Chair Seeks Backing for Key Board Members

Denholm also urged investors to back three veteran board members up for re-election, noting that their oversight has been central to Tesla’s global expansion and ongoing AI and energy projects.

She said their continued presence on the board would help maintain stability and decision-making speed as the company scales manufacturing and competes with new entrants in electric vehicles and autonomous technology.

Musk’s Expanding Ventures Raise Investor Concerns

Elon Musk’s expanding list of ventures — from SpaceX and X (formerly Twitter) to Neuralink and xAI — has prompted growing concern among Tesla shareholders about how much time and focus he can dedicate to the company. Musk insists he can manage several businesses at once, but his increasing attention to AI and social media has left investors questioning where Tesla fits in his priorities.

In her letter, Chair Robyn Denholm warned that if shareholders reject the proposed $1 trillion compensation plan, Musk’s involvement in Tesla could decline at a critical point in its growth. The company is scaling its efforts in self-driving technology, robotics, and advanced manufacturing — areas that depend on Musk’s direct guidance and long-term commitment.

Some investors fear that without a clear incentive to keep Musk’s focus on Tesla, strategic projects could slow while his other companies absorb more of his attention.

The November 6 shareholder vote will test investor confidence in Musk’s leadership and determine whether Tesla can keep him fully engaged as rivals accelerate their own electric and AI-driven technologies.

Also Read: Tesla Recalls Over 63,000 Cybertrucks Due to Excessive Front Light Brightness