Elon Musk’s path to becoming the world’s first trillionaire has hit a major hurdle. Norway’s sovereign wealth fund, a powerful $17 billion investor in Tesla, announced it will vote “no” on the $1 trillion pay deal designed to secure his leadership for the next decade.
The proposed package is structured to reward Musk if he can increase Tesla’s valuation from around $1 trillion to a staggering $8.5 trillion. If successful, his personal stake would grow from 16% to over 25%, pushing his net worth into the trillions.
However, the Norwegian fund, the world’s largest, is not on board. It stated that while it appreciates Musk’s vision, it is “concerned about the total size of the award” and the associated risks, including share dilution.
This opposition adds to a growing chorus of dissent. Two highly influential shareholder advisory groups, Glass Lewis and ISS, have both recommended that investors reject the package. Major pension funds, including the California Public Employees’ Retirement System (CalPERS), have also voiced their opposition.
The vote comes at a precarious time for Tesla. The company is grappling with falling sales, with global deliveries down 13% in the first half of the year and significant drops in key European markets, putting pressure on the board’s justification for the record-breaking award.