Tesla Inc.’s chair, Robyn Denholm, strongly endorsed Elon Musk as the only leader capable of guiding the company’s next phase into artificial intelligence and robotics, while acknowledging that he may not continue as CEO, Bloomberg reported.
“He is a generational leader,” Denholm said during an interview on Bloomberg TV. “There aren’t any other people out there like Elon who can actually lead the company over the next decade or so.” Her remarks come amid Tesla’s evolving succession plans and the unveiling of a groundbreaking compensation package for Musk, potentially worth around $1 trillion.
The proposed plan, which shareholders will vote on in November, is tied to ambitious performance milestones to be met over the next decade. Key targets include expanding Tesla’s robotaxi operations, delivering 20 million electric vehicles, and achieving substantial market value and adjusted EBITDA thresholds. Denholm also noted that the plan contemplates Musk transitioning to another leadership role, such as chief product officer, while remaining closely involved with Tesla’s strategic growth initiatives.
The compensation package outlines Tesla’s future objectives, with milestones including:
- $2 trillion market value and 20 million EVs delivered
- $3 trillion and 1 million robots delivered
- $4 trillion and $50 billion adjusted EBITDA
- $7.5 trillion and beyond for additional financial benchmarks
(Source: Tesla proxy filing, Bloomberg)
These incentives are designed to ensure Musk’s focus remains on Tesla’s core and emerging businesses, even as he manages other ventures including SpaceX, xAI, Neuralink, and the Boring Company. Denholm emphasized that Musk’s engagement in external projects, rather than being a distraction, has historically contributed positively to Tesla’s success. “It is how he’s delivered in the past,” she said. “From our perspective, actually having his creative energies in various endeavors that are outside of Tesla actually helps Tesla.”
The proxy filing also includes a non-binding proposal for Tesla to take a stake in Musk’s artificial intelligence startup, xAI. The two companies already collaborate, with xAI’s Grok integrated into Tesla’s vehicles and agreements for Tesla’s Megapack battery systems to support xAI’s operations.
Musk has increasingly bet Tesla’s long-term future on robotics, AI, and driverless vehicles. He recently stated that up to 80% of Tesla’s value could stem from the Optimus humanoid robot. However, these efforts come amid declining EV sales in major global markets and growing consumer backlash linked to Musk’s political involvement, particularly his role in President Donald Trump’s administration earlier this year.
Despite these challenges, Tesla’s shares rose 6.3% on Friday, though they remain down 8.7% year-to-date, contrasting with a 12% gain in the broader S&P 500 Index.
The developments underscore both the risks and rewards Tesla faces as it pushes into new frontiers under Musk’s leadership, with the company banking on innovation-driven growth to redefine its next chapter.
