Musk's political activities haven't hurt sales: Tesla chair
What's the story
Tesla's board chair, Robyn Denholm, has rejected the idea that Elon Musk's political activities have hurt sales at the electric vehicle (EV) maker. The statement came during an interview with Bloomberg Television. The denial comes just days after Tesla's board proposed a massive $1 trillion compensation plan for Musk, which would be the largest corporate pay package in history. This highlights his grip on the carmaker as it pushes to become an AI and robotics powerhouse.
Sales impact
Board remains confident in Musk's leadership
Denholm's statement comes amid growing concerns over the impact of Musk's political activities on Tesla's sales. However, she has remained confident that these factors have not affected the company's performance. The board has also expressed its faith in Musk to lead the company into a new era of growth, despite losing market share to Chinese competitors in key markets due to declining demand.
Market response
Tesla shares rise on compensation proposal
Despite the challenges, Tesla's shares rose nearly 7%. Denholm, chosen by Musk to lead Tesla's board, has frequently faced criticism for being too loyal to the billionaire and not holding him in check. Musk previously spearheaded the Department of Government Efficiency (DOGE), which is designed to slash government spending, before stepping back from it in late May.