Tesla chair Robyn Denholm has asked shareholders to approve Elon Musk's $1 trillion pay package.Denhold warned in a letter that Musk could leave if he doesn't get the package. Shareholders will vote next month on the proposal.

Tesla's board is warning shareholders they risk losing Elon Musk as CEO if they don't pass his $1 trillion pay package.

In a letter to shareholders sent on Monday, Tesla chair Robyn Denholm said that Musk could unlock the EV giant's "full potential," adding that failing to pass the compensation package could lead to Musk stepping away and Tesla losing "significant value."

"The fundamental question for shareholders at this year's Annual Meeting is simple: Do you want to retain Elon as Tesla's CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?" wrote Denholm.

This is a developing story. Check back soon for updates.