In a bid to secure CEO Elon Musk's undivided attention and dedication to Tesla, the board of Tesla Inc. is scrambling to reinstate his overturned record compensation package from 2018. The package, initially designed to ensure Musk's full commitment to the company, was recently rescinded by a Delaware judge, prompting Tesla Chair Robyn Denholm to push for its re-approval by shareholders.

Denholm is actively working to persuade shareholders that reinstating the compensation package, with its holding requirements, would serve as a means to incentivize Musk to continue driving Tesla's growth, as reported by The Wall Street Journal. However, the vote also puts the spotlight on Tesla's reliance on Musk, especially as he juggles multiple ventures and increasingly becomes involved in controversial social and political matters, which have started impacting Tesla's main business.

The Delaware judge raised the question of whether Musk's motivation should have stemmed from his existing equity stake in Tesla, which would have resulted in substantial gains for every significant increase in market value. Tesla, on the other hand, argues that shareholders had initially approved the compensation package, Musk fulfilled his obligations, and therefore, he should be the only one to receive what was promised.

Denholm has taken her plea to shareholders through a video appeal, highlighting the significance of the vote for Tesla's future. She emphasized that a single judge's ruling should not override the collective decision of Tesla's millions of owners.

The concerns over Musk's commitment to Tesla have been further compounded by recent inter-company transactions between Tesla and Musk's other ventures, including The Boring Company, in which approximately $9 million in expenses were billed to one another. These transactions have raised questions about corporate governance and further intensified the scrutiny surrounding Musk's focus on Tesla.

As the board of Tesla grapples with these challenges, the upcoming vote on Musk's compensation package reinstatement will undoubtedly shape the future course of the company. Shareholders will have to carefully weigh the importance of Musk's commitment against the potential risks posed by his numerous other endeavors, as Tesla seeks stability and continued growth in the competitive electric car market.