Norway’s sovereign wealth fund, the world’s largest, has announced it will vote against Tesla’s proposed $1 trillion pay package for Elon Musk at the automaker’s upcoming annual meeting. The fund, managed by Norges Bank Investment Management, holds a $17 billion stake in Tesla and is the company’s seventh-largest shareholder.
In its statement, the fund praised Musk’s “visionary leadership” and acknowledged the “significant value created” under his tenure but said the proposed award was too large and posed governance risks. It cited concerns about the dilution of shareholder value and “lack of mitigation of key person risk,” referring to Tesla’s heavy dependence on Musk.
The new plan would grant Musk additional shares if Tesla’s market value increases from about $1 trillion to $8.5 trillion over the next decade. If successful, Musk’s ownership could rise from around 16% to more than 25%, potentially making him the world’s first trillionaire.
Tesla’s board, led by chair Robyn Denholm, has argued the package is essential to retain Musk and keep him motivated. Denholm said in a letter to shareholders that Tesla risks “significant value loss” if Musk were to step away, describing him as central to the company’s growth trajectory.
However, investor advisory firms Glass Lewis and Institutional Shareholder Services have recommended that shareholders reject the proposal. They argue the scale of the award is “excessive” and misaligned with long-term shareholder interests, particularly given Tesla’s slowing sales and volatile stock performance in 2025.
This is not the first time Norway’s fund has opposed a major Tesla pay plan. It voted against Musk’s previous $56 billion package in 2023, which was later voided by a Delaware court. That earlier conflict even led Musk to reject a personal invitation from the fund’s CEO, Nicolai Tangen.
The upcoming shareholder vote could prove pivotal not only for Tesla’s leadership structure but also for setting future benchmarks on executive pay across corporate America. A rejection by multiple institutional investors could force Tesla’s board to renegotiate the structure and scale of Musk’s incentives.