Tesla Preparing Internal CEO Succession Plan as $1 Trillion Musk Compensation Package Faces Shareholder Vote

Tesla is reportedly examining internal candidates for the CEO position should Elon Musk depart if the proposed $1 trillion compensation package fails to pass at next week's annual shareholder meeting, according to Bloomberg News, citing statements from the automaker's board chair.

Board Chair Robyn Denholm urged shareholders on Monday to approve the CEO compensation package, which is designed to retain Musk at Tesla's helm as the company shifts its focus toward autonomous driving technology and humanoid robots.

This situation highlights Musk's continuing importance to Tesla's corporate identity and investor confidence, even as the company faces increasing pressure to reduce its reliance on its high-profile leader.

Tesla has not provided an immediate response to Reuters' request for comment on this matter.

The compensation package under consideration would award Musk 12 tranches of stock options linked to ambitious targets, including reaching a market capitalization of $8.5 trillion and achieving significant milestones in autonomous driving and robotics development.

Following numerous senior executive departures over recent years, Tesla's management team has thinned considerably. Currently, Chief Financial Officer Vaibhav Taneja and Senior Vice President of Automotive Tom Zhu stand as the most prominent executives beneath Musk in the company hierarchy.