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Tesla Chair Robyn Denholm has issued a new letter to shareholders ahead of the company’s upcoming Annual Meeting on November 6, urging investors to back CEO Elon Musk’s proposed $1 trillion compensation plan and other key board proposals.
“With Tesla’s Annual Meeting fast approaching on November 6, Board Chair, Robyn Denholm, sent a letter to shareholders on the critical nature of this vote,” the company said in a post on X. “The fundamental question for shareholders at this year’s Annual Meeting is simple: Do you want to retain Elon as Tesla’s CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?”
In her letter, Denholm wrote, “Tesla is at a critical inflection point, and we need your vote to help determine the future direction of our evolving company. Your vote matters, and the deadline for voting is 11:59pm ET on November 5th.”
She went on to emphasize the board’s commitment to aligning Musk’s incentives with long-term shareholder value through what she described as a “highly customized performance plan.”
“Our goal was two-fold: (1) retain and incentivize Elon to capitalize on the unique opportunities that lie ahead for Tesla and (2) do so in a manner that promotes the development of products and services that will propel our world toward a cleaner, safer, and more prosperous future,” Denholm said.
The proposed $1 trillion package, first unveiled last month, would see Musk receive full compensation only if Tesla achieves an $8.5 trillion market capitalization alongside other ambitious performance milestones. Shareholders will vote on this plan, along with several other proposals, including an investment in xAI, during the November 6 meeting.
Denholm warned that without Musk, Tesla could “lose significant value,” adding, “While there may be nothing wrong with being just another car company, our Board believes that Tesla can be more, that our shareholders deserve more, and that Elon is the right leader to help us achieve our full potential.”
This latest appeal follows a similar letter Denholm sent last week, urging investors to ignore recommendations from proxy advisory firms Glass Lewis and ISS, which both advised against Musk’s record-setting pay package and the xAI proposal. Tesla has also criticized both firms for their opposition, noting that neither holds a financial stake in the company.
Tesla has been running an extensive campaign encouraging shareholders to vote “with Tesla on all proposals,” arguing that the company’s unorthodox strategy under Musk has delivered “extraordinary shareholder returns.”
If you’re a Tesla shareholder, how are you planning to vote at the upcoming Annual Meeting? Let us know in the comments below.
