• Tesla board chair warned shareholders that Elon Musk could take his ideas "other places." 
  • Musk has said he'd prefer to build AI and robotics products outside of Tesla without more control.
  • Robyn Denholm said the pay package vote is about fairness and respect, "not about the money."
https://www.businessinsider.com/tesla-chair-robyn-denholm-lets-elon-musk-take-the-spotlight-2024-2


In the days leading up to the company's annual meeting, she intensified her efforts to persuade shareholders to approve Elon Musk's $55 billion pay package.

During a CNBC interview, she detailed the potential consequences of rejecting the pay plan. Additionally, in a shareholder letter filed with the SEC, she hinted that Musk might take his talents elsewhere if the package is not approved.

"What we recognized in 2018 and continue to recognize today is that one thing Elon most certainly does not have is unlimited time," she wrote. "Nor does he face any shortage of ideas and other places he can make an incredible difference in the world."

These other places include the four other companies he leads alongside Tesla, such as X, his artificial intelligence startup xAI, The Boring Company, and SpaceX. While Musk is undoubtedly busy, some investors have raised concerns about his level of focus on Tesla.



While it remains uncertain what Musk would do if shareholders reject his pay package, the Tesla CEO has expressed a desire for more control at the company to advance its AI and robotics initiatives.

In a January post on X, Musk stated he was "uncomfortable" expanding Tesla's AI and robotics development without having 25% voting control. According to company filings, Musk currently holds about 13% control.

The CEO stated that unless granted more control, he would prefer to develop AI and robotics products "outside of Tesla."

Although Tesla is actively working on AI and robotics, Musk is also pursuing AI developments through his other companies.

Reportedly, he's planning a supercomputer gigafactory for xAI in Memphis, and his social networking company, X, also has a ChatGPT rival called Grok.

Recently, Musk announced that Tesla would allocate approximately $10 billion this year towards "combined training and inference AI." The company is actively advancing its Full Self-Driving system, Tesla's supercomputer Project Dojo, and the humanoid Tesla robot Optimus.

In the letter, Denholm emphasized that the pay package is "obviously not about the money," highlighting Musk's status as one of the wealthiest individuals globally. She reiterated that Musk would maintain this status even without the 2018 compensation plan.

According to Bloomberg's Billionaire Index, Musk ranks as the third wealthiest person globally, with an estimated net worth of $203



"We want those ideas, that energy, and that time to be dedicated to Tesla, for the benefit of you, our shareholders," Denholm expressed. "But this requires mutual respect."

In a CNBC interview on Thursday, Denholm stated that while Tesla "can exist" without Musk, the company currently relies on his leadership.

The annual shareholder vote is scheduled for June 13.