Tesla is asking shareholders to approve a monumental $1 trillion pay package for Elon Musk, even as the company grapples with a significant slowdown in global sales and growing investor unrest.
The latest blow to the proposal comes from Norway’s sovereign wealth fund, a top-ten shareholder with a $17 billion stake. The fund announced it will oppose the deal, citing concerns over its “total size” and the risk of tying the company’s fate so closely to one individual.
This shareholder vote comes at a difficult time. Tesla’s global vehicle deliveries fell 13% in the first half of the year. Sales in key European markets like Sweden and Denmark have plummeted by over 85%, and shipments from its Shanghai factory also declined.
Despite the downturn, Tesla’s board claims the pay package is crucial. Chair Robyn Denholm warned investors that the company could lose “significant value” if Musk, who has hinted at his potential departure, isn’t retained with this massive incentive.
The Norwegian fund isn’t alone. Major advisory firms ISS and Glass Lewis, plus large pension funds like CalPERS, are also urging a “no” vote, setting the stage for a dramatic shareholder meeting on Thursday.