(Reuters) - Tesla board chair Robyn Denholm dismissed concerns that Elon Musk's political activity had depressed sales at the electric-vehicle maker and said the billionaire was "front and center" at the company after several months at the White House.

"What he does from a personal perspective in terms of his political motivations is up to him," Denholm said in an interview with Bloomberg Television on Friday. "From a politics perspective, obviously we're in a democracy, so everyone gets to voice their points of view."

Shares of the company were up nearly 7%.

Denholm's statements come days after Tesla's board proposed a $1 trillion compensation plan for CEO Musk, in what would be the largest corporate pay package in history, underscoring the hold he has over the carmaker as it attempts to transform into an AI and robotics powerhouse.

Musk's foray into party politics and his willingness to challenge President Donald Trump has heightened concerns among Tesla investors and analysts about potential distractions and hurt sales as alienated buyers chose rival EVs.

The board, however, has recommended shareholders, during an annual meeting next month, vote against a proposal to implement a policy to ensure political neutrality and prohibit the company and its leadership team from endorsing any political party.

Musk has continued to court controversy with his statements and garnered criticism for lack of content moderation on his social media platform X. On Wednesday, he blamed "the left" for the murder of conservative activist Charlie Kirk the day he was killed, before a suspect had even been identified.

The EV maker's board has repeatedly voiced confidence in Musk's ability to steer the company in a new direction while reigniting growth, even as it loses ground to Chinese rivals in key markets amid softening demand.

Denholm, who was hand-picked by Musk to run Tesla's board, has often been criticized for being beholden to the billionaire and failing to hold him accountable.

Musk spearheaded Trump's Department of Government Efficiency (DOGE), aimed at cutting government spending, before he pulled back his involvement in late May.

(Reporting by Zaheer Kachwala and Arsheeya Bajwa in Bengaluru and Abhirup Roy in San Francisco; Editing by Shilpi Majumdar and Anil D'Silva)