Tesla Board Chair Robyn Denholm has urged shareholders to approve CEO Elon Musk\u2019s new 2025 Performance Award ahead of the November 6 Annual Meeting, warning that rejecting it could risk losing his leadership.\u00a0<\/p>\n
In a letter posted on Tesla\u2019s official handle on X, Denholm stated that the company must \u201cfoster an environment that motivates Elon to achieve great things,\u201d or risk losing \u201chis time, talent, and vision,\u201d which she described as essential to Tesla\u2019s success.<\/p>\n
Retaining Musk amid Tesla\u2019s critical transition<\/p>\n
Denholm\u2019s letter<\/a> emphasized Tesla is at a \u201ccritical inflection point\u201d as it scales AI-driven projects such as Full Self-Driving (FSD) and Optimus. She argued that Musk\u2019s leadership remains vital as Tesla pushes toward becoming \u201cthe leading provider of autonomous solutions and the most valuable company in the world.\u201d Without a new performance-based plan, Denholm warned, Musk could step away, potentially costing Tesla significant long-term value.<\/p>\n \u201cIf we fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position, and Tesla may lose his time, talent, and vision, which have been essential to delivering extraordinary shareholder returns,\u201d the Tesla Board Chair stated.<\/p>\n The board\u2019s proposed 2025 Performance Award aligns Musk\u2019s compensation with ambitious targets while extending his commitment for at least 7.5 more years. Denholm stated that the vote is a defining moment for Tesla\u2019s future direction, adding that the plan was designed to keep Musk focused on innovation while maintaining governance discipline. \u201cA vote here is both an endorsement of Elon\u2019s vision and a vote for Tesla\u2019s carefully tailored strategy,\u201d she said.<\/p>\n With Tesla\u2019s Annual Meeting fast approaching on November 6, Board Chair, Robyn Denholm, sent a letter to shareholders on the critical nature of this vote.<\/p>\n The fundamental question for shareholders at this year\u2019s Annual Meeting is simple: <\/p>\n Do you want to retain Elon as Tesla\u2019s\u2026\u2014 Tesla (@Tesla) October 27, 2025<\/a><\/p>\n Musk\u2019s pay history is rooted in performance<\/p>\n Elon Musk\u2019s pay history with Tesla has long been unconventional. For years, he has declined a regular salary, instead directly tying his earnings to Tesla\u2019s ability to meet ambitious production and market-value goals. His 2018 performance award<\/a>, approved by shareholders at a time when Tesla had a market cap of just about $59 billion, granted him stock options only when Tesla reached aggressive growth milestones, such as growing the company\u2019s market cap to $650 billion.\u00a0<\/p>\n At the time, the milestones included $50 billion additions to Tesla\u2019s market cap, which were considered by many to be unrealistic. Those goals were ultimately met by the electric vehicle maker, but a Delaware court later rescinded the plan in January 2024, calling it an \u201cunfathomable sum.\u201d<\/p>\n Tesla shareholders reaffirmed support for Musk\u2019s pay in 2024, even as legal disputes continued. The board then issued an interim equity package<\/a> valued around $29 billion while developing a new long-term plan earlier this year. Since then, Tesla\u2019s Board has proposed Musk\u2019s 2025 CEO Performance Award<\/a>, which could be worth nearly $1 trillion, but only if Musk were to grow Tesla into the world\u2019s most valuable company with a market cap of $8.5 trillion, among other aggressive and ambitious targets.\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n