Tesla is preparing for a potential leadership change if Elon Musk steps down due to a rejected pay package vote. The electric carmaker is considering both internal and external candidates for the CEO position, with a focus on ensuring a smooth transition. This comes as Musk's proposed $1 trillion pay package, which could give him a significant stake in Tesla, is set to be voted on by shareholders next week. If Musk's pay package is not approved, he has threatened to step down or focus on his other ventures, including xAI and SpaceX. Tesla is taking proactive measures to maintain Musk's involvement, including placing its Optimus humanoid robot in New York to drum up support. If the pay package vote fails, Tesla has a 'Plan B' with a strong leadership bench, including Tom Zhu, the global production chief and China head. The company is also considering a nonbinding shareholder vote on a potential investment in Musk's artificial intelligence startup, xAI. Tesla shares have seen a 2.9% rise in New York, marking a notable rebound from earlier in 2025 when concerns about the company's aging vehicle lineup and Musk's political activity dragged the stock down. The outcome of the pay package vote and the potential leadership change will be closely watched by investors and the public alike.
