Tesla board chair Robyn Denholm has defended CEO Elon Musk’s proposed 10-year, $1 trillion compensation package, dismissing the debate surrounding it as “a little bit weird.”
Why it matters: The massive pay package, which shareholders will vote on in November, is designed to align Musk’s incentives with Tesla’s long-term success and motivate him to prioritize the company amidst his other ventures.
The details:
- Denholm, who was part of the special committee that proposed the package, argued that Musk needs to be motivated by extraordinary challenges tied to extraordinary compensation.
- She suggested that Musk is more focused on the voting power the promised Tesla shares would confer rather than the additional wealth they represent.
- Denholm emphasized that the plan is about “future performance” and that Musk “gets nothing if he doesn’t perform against the goals.”
Musk’s stakes in his private companies, xAI and SpaceX, are now worth nearly twice as much as his Tesla shares, according to a recent proxy report.
The background: Until last year, most of Musk’s wealth came from his Tesla stock. However, the surging valuations of xAI and SpaceX have shifted the balance.
By the numbers:
- Musk’s current 13% ownership of Tesla is valued at about $140 billion.
- SpaceX’s planned insider share sale would reportedly value the company at $400 billion, making Musk’s 42% stake worth about $170 billion.
- xAI’s valuation has increased from $80 billion at the start of the year to a projected $200 billion, making Musk’s majority stake worth over $100 billion.
Financial commentator Jim Cramer has reasserted his belief that Tesla should be regarded as a technology firm rather than just an automobile manufacturer.
What they’re saying:
- “It’s autonomous driving, and it is robots. People are starting to recognize it for what it really is,” Cramer remarked.
- Cramer suggested that CEO Elon Musk might be the only individual capable of successfully scaling robot production.
The big picture: The ongoing debate about Tesla’s identity in the market continues, with Cramer standing firm on his belief that the company’s future lies in technology, particularly in autonomous driving and robotic innovations.
Recent from X
Shout out to my Fred, Tesla is at 75% since this post. pic.twitter.com/uApFHhE6dv
— Tesla Owners Silicon Valley (@teslaownersSV) September 13, 2025
Tesla Beat #111: $TSLA News Each Friday at 8am PST w/ @sjvtesla @hanscnelson @futureaza https://t.co/EdVLEYqjdu
— Tesla Owners Silicon Valley (@teslaownersSV) September 12, 2025
Tesla Board Chair Robyn Denholm on increased security for CEO Elon Musk:
— TESLARATI (@Teslarati) September 12, 2025
