Tesla Considers Internal Successors if Elon Musk Departs Over $1 Trillion Pay Package

Tesla's board is preparing internal CEO candidates as a contingency should Elon Musk depart if shareholders reject his proposed $1 trillion performance-based compensation package at the annual meeting on November 6, 2025. Board Chair Robyn Denholm revealed in a Bloomberg interview on October 28 that an "orderly transition" would most likely involve promoting from within, highlighting executives like Senior VP of Automotive Tom Zhu—who has rotated through key roles including China operations—and CFO Vaibhav Taneja, amid a thinned leadership bench from recent high-level exits. Denholm, who directly discussed the stakes with Musk, warned of a "high probability" he would disengage or leave without the deal, emphasising it's about securing his focus on Tesla's AI ambitions over rivals like xAI or SpaceX.

The package comprises 12 stock option tranches vesting only upon hitting audacious milestones: expanding market cap to $8.5 trillion (from ~$1 trillion), annual vehicle production to 20 million, deploying millions of robotaxis, and producing 1 million Optimus humanoid robots by 2035—potentially granting Musk ~25% voting control to safeguard innovations like his "enormous robot army". This follows a Delaware court's 2024 invalidation of Musk's 2018 package (initially $56 billion, later ~$56B)—re-ratified by shareholders but voided over board conflicts—prompting Tesla's reincorporation to Texas and this refreshed "pay-for-performance" proposal to retain Musk for 7.5+ years.

Denholm's shareholder letter and media blitz—including CNBC and investor meetings with Vanguard, BlackRock, and State Street—frame the vote as a "critical inflection point", urging approval to propel Tesla beyond EVs into AI/robotics dominance, dismissing proxy advisors ISS and Glass Lewis' opposition as "misguided". While votes can be cast until November 5 (11:59 p.m. ET), early support from Florida's pension fund signals momentum, though last-minute shifts loom; Tesla shares rose ~3% on the news.

Also Read: Tesla Board Sounds Alarm: Musk Could Exit Without $1 Trillion Compensation Plan

The saga underscores Musk's irreplaceable aura—Musk tweeted the package ensures "strong influence" post-robotaxi success—yet spotlights governance tensions, with a separate non-binding xAI investment vote and calls for diversified leadership as Tesla navigates EV slowdowns and autonomy bets. Approval could cement Musk's legacy; rejection risks a valuation plunge, testing if Tesla's "deep bench" can sustain its visionary trajectory without the man who defines it.

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