Elon Musk could leave Tesla as CEO if his proposed $1 trillion pay package was not approved, Chair Robyn Denholm warned in a letter to shareholders.

Elon Musk threatens to leave Tesla unless shareholders approve a $1 trillion performance-based pay deal tied to future growth.

Musk's proposed pay package, which consists of 12 tranches of shares, will award him up to $1 trillion contingent on meeting certain targets, including increasing the company's...