Tesla is preparing internal candidates to succeed CEO Elon Musk if shareholders reject his proposed $1 trillion compensation package. Board Chair Robyn Denholm mentioned an “orderly transition” involving internal promotions or external hires. The upcoming November 6 shareholder meeting will determine Musk’s pay plan tied to market value, robotics, and AI milestones.

If shareholders reject the proposed compensation package, Musk may shift focus to SpaceX or other ventures. Tesla’s board is actively seeking support from major investors like Vanguard and BlackRock. Proxy advisers ISS and Glass Lewis have advised against the deal, leading to uncertainty for the company.

In a bid to boost morale, Tesla showcased its Optimus humanoid robot in New York. Despite the uncertainty, Tesla shares rose 2.9%, still lagging behind the S&P 500. Denholm emphasized the importance of keeping Musk focused on Tesla’s AI and robotics initiatives.

If the compensation proposal fails, Tesla has a backup plan with strong internal leadership like Tom Zhu. A nonbinding vote on investing in Musk’s AI firm xAI is also on the ballot. Tesla has not yet invested in xAI, but any future move would undergo a formal review.

On Monday, TSLA closed at $460.55, up 1.8%, and traded after hours at $460.03 on the NasdaqGS. The company’s future hinges on the upcoming shareholder meeting and the decision on Musk’s compensation package.

Read more at Nasdaq: Tesla Readies Internal Successors As Musk Threatens Exit Over $1 Trillion Pay Vote