Tesla: Musk out, steering wheel in?

Ahead of a vote for Tesla’s board to decide on an almighty pay package for CEO Elon Musk next week, Tesla executives have hinted at a possible replacement if things don’t work out.

Tesla Chair Robyn Denholm confirmed in an interview the replacement for Musk “most likely would be internal” if Musk doesn’t get what he’s asking for.

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Speaking at Bloomberg’s office in New York, she said “I’ve had the conversations with him directly” and expects he would shift his focus to one of his other businesses like xAI or SpaceX if his request for a 25 per cent stake and increased voting power isn’t approved.

For Musk to be granted the increase, Automotive News reports he must “significantly expand Tesla’s market value and hit growth milestones in its car, robotics and robotaxi businesses”.

Part of the above, Denholm said, is that Tesla hopes the long-awaited Cybercab will fill the role of Tesla’s ‘more affordable’ electric car, which Musk has increasingly alluded to.

To make this happen, Denholm said the Cybercab could morph to become less autonomy-focused and more car-like.

“If we have to have a steering wheel, it can have a steering wheel and pedals,” Denholm told Bloomberg.

Tesla’s annual meeting on November 6 will see the vote take place, but Denholm said investors often wait until the last minute. She and other board members, including James Murdoch, have met with corporate shareholders (such as Vanguard Group, Blackrock) which have reportedly been advised to vote against Musk’s pay increase.

“There is no guarantee,” she said. “There is a large contingent of passive investors who actually follow their guidance, so we have to counter that with them directly.”

If Musk’s vote doesn’t pass, a so-called ‘plan B’ could include replacing Musk with one or more internal candidates, including the man who “led the construction and operations of Gigafactory Shanghai”, Senior Vice President of Automotive Tom Zhu.