Norway’s sovereign wealth fund, a $17 billion shareholder in Tesla, has formally opposed the $1 trillion pay package proposed for Elon Musk, citing its “total size” as a primary concern.
The decision from the world’s largest national wealth fund adds significant weight to the “no” campaign ahead of Tesla’s annual shareholder meeting. The fund is the carmaker’s seventh-biggest investor.
The fund stated it appreciated the “significant value” Musk has generated but could not overlook its concerns. Beyond the size, it also pointed to the “dilution” of existing shares and the extreme “key person risk” the deal represents.
This vote is a repeat of history. The Norwegian fund also opposed Musk’s $56 billion package last year. That deal was approved by shareholders but famously overturned by a Delaware court, prompting this new, even larger proposal.
Tesla’s board, meanwhile, is urging a “yes” vote, framing it as a matter of retention. Chair Robyn Denholm wrote to shareholders that failing to approve the deal could lead to Musk’s departure and a “significant value” loss for the company.