Tesla is asking shareholders to approve a $1 trillion pay package for Elon Musk, a request that comes as the company’s sales are plummeting in key European markets, fueling investor dissent.
Norway’s sovereign wealth fund, a $17 billion investor, announced it will vote “no,” citing the deal’s “total size.” The decision is particularly striking as Tesla’s sales in Norway itself fell 50% in October. The data was even worse elsewhere, with registrations down 89% in Sweden and 86% in Denmark.
The company’s global deliveries also fell 13% in the first half of the year, and shipments from its Shanghai factory declined 10% in October.
Despite this performance, Tesla’s board is pushing the $1 trillion package, which could make Musk the world’s first trillionaire. Chair Robyn Denholm insists the deal is “essential” to retain Musk.
The Norwegian fund is not alone. Its “no” vote is supported by recommendations from influential advisory firms Glass Lewis and ISS, setting the stage for a contentious shareholder meeting.