As Tesla grapples with falling sales across Europe and China, its board is facing a separate battle: convincing shareholders to approve a $1 trillion pay package for Elon Musk. A key investor, Norway’s sovereign wealth fund, has just said “no.”
The fund, which owns a $17 billion stake, announced its opposition ahead of Thursday’s annual meeting. Its primary concerns are the “total size of the award,” share “dilution,” and the “key person risk” of binding the company’s future to Musk.
This investor revolt comes at a challenging time. Tesla’s Shanghai factory shipments fell 10% in October. In Europe, new car registrations plummeted by 89% in Sweden, 86% in Denmark, and 50% in Norway, with only France showing a small gain.
Despite these figures, Tesla’s board argues the $1 trillion package is vital to retain Musk. Chair Robyn Denholm wrote to shareholders that the company risks losing “significant value” if he leaves, as he is central to its “visionary” path.
The Norwegian fund is joined in its opposition by influential proxy advisory firms Glass Lewis and ISS, as well as the American Federation of Teachers and CalPERS, the largest public pension scheme in the US.
