- Tesla Motors Inc
- 04 November 2025 11:33:16
Source: Sharecast
Norges Bank Investment Management, Norway's sovereign wealth fund with a stake in the company of little over 1%, on Tuesday disclosed its decision to vote against the eye-watering remuneration deal. The fund is Tesla's sixth-largest institutional investor.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk—consistent with our views on executive compensation,” NBIM said in a statement.
The development comes ahead of Tesla's annual shareholder meeting with shareholders on Thursday, and amid concerns – voiced by chair Robyn Denholm in particular – that Musk could walk away if he doesn't get what he wants. Musk, who already owns 15% voting rights in the company, will also be able to vote on the package.
Under the terms of the deal being proposed, Musk could be granted an additional 12% holding in the EV maker if the company's value hits $8.5trn over the next 10 years. Currently, the business has a market cap of just under $1.5trn, having grown by 93% over the past 12 months.
Other proposed targets include Tesla vehicle deliveries reaching 20m, the commercial launch of the robotaxi and ramping up subscriber numbers for the company's full self-driving service.
“In isolation, this decision may not make too much difference, given its relatively modest holding of 1.1%, but it follows on from advice from shareholder advisory firms Glass Lewis and ISS to reject the deal, something which led Musk to dub them ‘corporate terrorists’," said Dan Coatsworth, head of markets at AJ Bell.
“Achieving the headline number involves hitting demanding objectives and on Musk’s ability to move Tesla beyond being an EV manufacturer to a broader AI and technology business."
Tesla futures were down 2.4% at $457.11 in pre-market trading in New York.
