A major Tesla investor is warning that the company is too reliant on Elon Musk. Norway’s sovereign wealth fund, the world’s largest, will vote against Musk’s $1 trillion pay package, citing a “lack of mitigation of key person risk” as a core reason.
The fund, which holds a $17 billion stake, said the sheer size of the award and the dilution it would cause are also major concerns. The decision comes just two days before Tesla’s crucial annual shareholder meeting.
This stance directly contradicts the argument from Tesla’s board. Chair Robyn Denholm has warned shareholders that the real risk is losing Musk, claiming the company’s value would plummet if he were to leave. The board sees the $1 trillion deal as the cost of retention.
The proposal itself is historic, potentially making Musk the world’s first trillionaire by boosting his stake to over 25% if Tesla’s valuation reaches $8.5 trillion.
The Norwegian fund’s “no” vote aligns it with other powerful critics, including the two main shareholder advisory groups, Glass Lewis and ISS, and the largest public pension fund in the US, CalPERS. This unified opposition signals a tough fight for Tesla’s board.