When He Gets the $1 Trillion, Will He Step Down or Stay? And If He Stays, Who Will Succeed Him?

Tesla Chair Robyn Denholm says the company is ready to name a new chief executive from its own ranks if shareholders reject Elon Musk’s proposed $1 trillion compensation package — a move that could prompt the long-time leader to walk away from the company. Speaking with Bloomberg, Denholm said an internal successor would “most likely” ensure a smooth transition, though she didn’t rule out looking outside the company for the role.

Musk’s potential departure has become a focal point ahead of a crucial shareholder vote. The compensation plan would grant him up to 25% of Tesla’s stock if the company meets aggressive targets tied to market capitalization growth and expansion in electric vehicles and robotics. Musk has previously warned that if the deal falls through, he’ll shift his focus to other ventures like xAI and SpaceX. Denholm echoed that sentiment, saying, “I have no doubt that if we don’t make this happen, he’s likely to leave or become less involved.” The proposed plan, she added, is designed to ensure that Tesla continues leading development in artificial intelligence and emerging technologies.

Denholm also revealed that Tesla has a “Plan B” in place should the vote not go Musk’s way. She highlighted the strength of the company’s second tier of leadership, mentioning Tom Zhu — Tesla’s head of production — as one of the key executives with extensive experience across divisions, including oversight of operations in China. She added that various succession scenarios are being considered, including a co-leadership model, noting that there are “a range of different alternatives” to secure Tesla’s long-term stability.