India, Oct. 28 -- Tesla chair Robyn Denholm has cautioned that Elon Musk may step down as CEO if shareholders reject his proposed $1 trillion pay package, media reports said.

The warning came in a letter to investors on Monday, ahead of the company's annual meeting on November 6.

Denholm's appeal follows mounting criticism that Tesla's board has failed to act in shareholders' best interests, with governance experts and advocacy groups questioning its independence and its ability to oversee Musk's dominant influence.

Musk's continued role, she added, is key as Tesla pushes to establish itself as a global leader in artificial intelligence and autonomous technology.

Denholm's letter framed the package as essential to aligning Musk's ince...