UPDATE: Tesla’s chair, Robyn Denholm, has just declared that only Elon Musk can lead the company’s crucial transition into artificial intelligence and robotics. However, she suggested that Musk might not remain in the CEO role as Tesla plans for its future. Speaking on Bloomberg TV, Denholm emphasized, “He is a generational leader,” and there are “no other people out there like Elon” who can guide Tesla over the next decade.
This urgent endorsement comes as Tesla prepares to unveil a massive $1 trillion compensation package for Musk, set for a shareholder vote in November 2023. The package includes performance benchmarks that Musk must meet over the next ten years, such as delivering 20 million electric vehicles and expanding the robotaxi business significantly. These incentives are designed to keep Musk focused on Tesla while the company explores growth in new markets, including robotics and AI.
Denholm noted that Musk’s potential shift to another leadership position, like chief product officer, is “contemplated” within the pay plan. This revelation raises questions about Musk’s role in the company as he continues to manage other ventures, including xAI and SpaceX. Despite these commitments, Denholm remains confident in Musk’s ability to deliver results for Tesla, stating, “It is how he’s delivered in the past.”
According to the latest reports, Tesla is integrating xAI’s technology into its vehicles, enhancing their capabilities with AI. Musk has indicated that Tesla could derive up to 80% of its long-term value from the Optimus humanoid robot, underscoring the company’s shift towards automation and advanced technology.
While Tesla faces challenges in its core electric vehicle market, including a notable 13% drop in global auto deliveries, Denholm dismissed concerns about Musk’s political involvement affecting the company’s performance. “What he does from a personal perspective in terms of his political motivations is up to him,” she remarked. This statement comes amid worries from investors that Musk’s political activism could distract him from Tesla’s growth.
As Tesla’s sales continue to decline for a second consecutive year, the company grapples with an aging vehicle lineup and increasing competition in the EV market. Denholm, however, insists that it is the car, not the CEO, that drives sales. “My view is over the long term, people buy things that they really love. And Tesla vehicles are things that people really love,” she affirmed.
In a sign of investor confidence, Tesla’s shares rose by 7.2% as of 12:51 PM on Friday in New York, despite a year-to-date decline of 8.7% through Thursday’s close. The broader S&P 500 Index has risen by 12% this year, highlighting the pressure Tesla faces to rebound.
As Tesla continues to navigate these changes, all eyes will be on the upcoming shareholder vote in November and Musk’s next steps as the automaker pushes towards an ambitious future in AI and robotics. The implications of these developments are significant, not only for Tesla but for the broader automotive industry and technology landscape. Stay tuned for more updates as this story unfolds.
