The electric vehicle maker will ask shareholders to vote again on a multibillion-dollar compensation package that was voided by a judge in January.
Once considered a laggard, the German luxury carmaker is one of only a few established automakers that has been able to compete effectively against Tesla.
Premier Li Qiang targets economic growth of about 5 percent this year as China signals readiness to borrow more for spending programs.
Robyn Denholm, who has led the electric car company’s board for more than five years, has been criticized for not serving as a check on Mr. Musk.
The company’s board of directors will now decide whether to appeal the decision, change where Tesla is incorporated or negotiate a new pay package.
Shareholders had sued, arguing that Mr. Musk’s compensation — which helped make him the world’s richest person — was excessive.
Shares in Elon Musk’s electric vehicle maker fell sharply after the company delivered lackluster quarterly results and declined to give full-year guidance.
Quarterly earnings soared from a year earlier after the company booked a tax benefit, but increased competition and a price war took a toll, the electric-car maker said.
Elon Musk, the electric car company’s chief executive, said he would “build products outside of Tesla” unless the board raises his stake to 25 percent.
Trevor Milton, who founded the truck company Nikola, will be sentenced on Monday in a fraud case that exposed the excesses in the electric vehicle business.