Tesla eyes backup CEO candidates as Musk threatens to quit if $1 trillion pay deal fails

Tesla’s leadership future is on the line. As Elon Musk’s $1 trillion pay package faces a crucial shareholder vote next week, the electric-car giant has confirmed it has a “Plan B” in case the world’s richest man walks away.

Board chair Robyn Denholm said Tesla is prepared to name a new CEO from within the company if Musk steps down. She told Bloomberg that the automaker has “a deep bench” of executives, including global production chief and China head Tom Zhu, who could take the reins if investors reject Musk’s compensation plan. “To ensure an orderly transition, the most likely would be internal,” she said, while leaving the door open to outside candidates.

“Tesla Inc. is prepared to name a new chief executive officer from inside the company if shareholders reject Elon Musk’s proposed pay package and he steps down. The compensation agreement could give Musk a stake if he significantly expands Tesla’s market value and hits growth milestones in its car, robotics, and robotaxi businesses,” Bloomberg reported.

“If the pay package vote fails, the company has a “Plan B” and a deep bench of executives, including global production chief and China head Tom Zhu, who could potentially take over. Tesla Inc. is prepared to name a new chief executive officer from inside the company if shareholders reject Elon Musk’s proposed $1 trillion pay package and he steps down, according to the chair of the EV maker’s board.”

Elon Musk Threatens to Leave Tesla if He Doesn’t Get $1 Trillion Pay

The warning follows Musk’s own comments that he might pull back from Tesla if he doesn’t get a larger equity stake and more control over the company’s direction. In mid-October, he hinted on X and in private conversations that he could “quit” and focus on his other ventures — SpaceX, xAI, and Neuralink — if shareholders deny the payout. Electrek and the Financial Times reported that Musk has “threatened to walk away” if the board doesn’t approve the plan, describing it as key to keeping him engaged at Tesla.

“Elon Musk has openly threatened to leave Tesla, or at least his role as CEO, if he doesn’t get his ridiculous compensation,” Electrek reported.

The compensation package would give Musk a 25 percent ownership stake if he can push Tesla’s market value beyond aggressive growth targets in electric vehicles, robotics, and its upcoming robotaxi business. Denholm said she has spoken directly with Musk and believes the risk of him stepping back is real. “There’s no question in my mind that if we don’t get this across, there is a high probability he would back away from the company or become less engaged,” she said.

With the vote approaching, Tesla’s board has been in full campaign mode. Denholm, James Murdoch, and former Chipotle CFO Jack Hartung have been meeting with major institutional investors, including Vanguard, BlackRock, and State Street to secure support. Proxy advisers ISS and Glass Lewis have recommended voting against the deal, arguing that the pay structure is excessive, leaving Tesla to rally retail investors, who own about 30 percent of the stock.

To drum up attention, Tesla even rolled out its humanoid robot Optimus in front of the Nasdaq MarketSite in New York this week, handing out Tesla-branded gummy candies and posing for selfies with passers-by. The move was part spectacle, part reminder of Tesla’s AI ambitions — and perhaps a subtle signal of how much of the company’s future hinges on keeping Musk’s attention focused.

Tesla shares rose nearly 3 percent Tuesday, extending a 12 percent gain this year, though still trailing the broader S&P 500. The stock has been volatile in 2025 amid criticism of Musk’s political commentary and concern over Tesla’s aging lineup.

For now, the company insists it’s ready either way. Denholm said the board has been deliberate about developing internal talent, with leaders like Zhu gaining experience across multiple divisions to prepare for any scenario. “There is a whole range of different alternatives out there,” she said, hinting that a co-leadership model isn’t off the table.

The shareholder vote on Musk’s package is set for November 6, and every indication suggests it will define Tesla’s next chapter — with or without Elon Musk at the wheel.