Tesla’s board chair Robyn Denholm dismissed fears that Elon Musk’s political activity hurts sales. She said Musk remains deeply involved in the company despite his growing presence in U.S. politics.
In a TV interview with Bloomberg, Denholm stressed that Musk’s personal views are his own. “What he does politically is up to him,” she said. “We live in a democracy, and everyone is free to share opinions.”
Following her remarks, Tesla shares rose nearly 7% on Friday.
A Controversial Pay Package
Her defense came soon after Tesla’s board proposed a record-breaking pay deal for Musk. If approved, it could reach $1 trillion, making it the largest in corporate history. Shareholders will vote at Tesla’s annual meeting next month.
At the same time, the board urged against a neutrality rule that would bar executives from endorsing political parties.
Political Risks and Investor Concerns
Musk’s outspoken behavior continues to spark unease. He frequently clashes with politicians and posts provocative comments on X, the platform he owns. Analysts warn that such actions may alienate buyers, who could turn to rival EV makers.
Earlier this week, Musk drew backlash after blaming “the left” for activist Charlie Kirk’s death, even before police named a suspect. Critics questioned his judgment and warned about the risks of politicizing Tesla’s brand.
Tesla Under Pressure
Despite this, Tesla’s board insists Musk is vital to its future. They argue his leadership is key as the company expands into artificial intelligence and robotics. Competition from Chinese automakers and weaker demand in major markets make strong leadership even more important.
Denholm herself has faced criticism for being too loyal to Musk. She was appointed chair by him and has been accused of avoiding direct challenges. Still, she repeated that Musk remains “front and center” in Tesla’s daily operations.
Political Involvement
Musk has long mixed business with politics. During Donald Trump’s presidency, he advised on cost-cutting programs through the Department of Government Efficiency (DOGE). That initiative ended quickly, and Musk stepped away from the role earlier this year.
Resources:
https://www.nytimes.com/
knowledgenexuses.com
