Elon Musk Could Walk Out of Tesla and Not Come Back

Core Viewpoint - The potential departure of Elon Musk from Tesla raises concerns about the company's future, particularly regarding its leadership and innovation in AI and robotics [2][4][6]. Company Summary - Tesla's Chair, Robyn Denholm, indicated that without a new $1 trillion incentive package, Elon Musk might leave the company, which would require him to achieve a market cap of $7.5 trillion, approximately five times its current valuation of $1.5 trillion [2][6]. - The board's proposal aims to lock Musk in for over seven years, contingent on meeting high performance hurdles [2]. - If Musk were to leave, there are concerns about the loss of his contributions to Tesla's advancements in AI and robotics, as he also leads xAI, one of the largest AI companies globally [4][6]. Industry Context - The situation highlights the debate over whether Tesla is primarily a car manufacturer or a technology company focused on AI and robotics, with its market cap significantly surpassing traditional automakers like Ford, which is valued at $53 billion [6]. - The potential for a fully self-driving car and advanced robotics is on the horizon for Tesla, but skepticism exists regarding Musk's ability to deliver these innovations amid increasing competition [6][8]. - Historical examples of companies struggling after the departure of key leaders, such as GE after Jack Welch, underscore the risks associated with Musk's potential exit [8].