A major Tesla shareholder, Norway’s sovereign wealth fund, has rejected Elon Musk’s $1 trillion pay package. The decision comes as the carmaker struggles with a significant sales slump in key global markets.
The fund, which holds a $17 billion stake, announced its “no” vote just days before the annual meeting. It cited the “total size of the award” and “key person risk” as its main concerns.
The timing is difficult for Tesla. Its Shanghai factory shipments fell 10% in October. That same month, new car registrations plummeted across Europe: down 89% in Sweden, 86% in Denmark, and 50% in Norway.
Despite these performance issues, Tesla’s chair Robyn Denholm insists the $1 trillion package is essential to retain Musk. She warned investors that the company’s value is tied to his leadership.
The Norwegian fund’s opposition is shared by other major financial players. Both ISS and Glass Lewis, two key advisory firms, have recommended that shareholders vote against the historic pay deal.
Tesla’s $17bn Shareholder Rejects $1T Musk Deal Amid Sales Slump
