Electric vehicle (EV) maker Tesla (TSLA) has lost another major shareholder vote over CEO Elon Musk’s proposed $1 trillion compensation plan. Norway’s sovereign wealth fund, Norges Bank Investment Management, which manages $1.9 trillion in assets, said today that it opposes the plan over its scale, key person risk, and potential dilution. Tesla shares are down nearly 3% in pre-market trading at the time of writing.
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The sovereign wealth fund has a 1.2% stake in Tesla and is the first large institutional investor to disclose its vote. Other large investors include Vanguard and Blackrock (BLK).
In a statement issued today, the fund said, “We recognize the major value created under Mr. Musk’s leadership, but we are worried about the total size of the award, possible dilution, and the lack of steps to reduce key person risk.”
Major Investors Oppose the Pay Package
Tesla is under growing pressure as the shareholder meeting approaches on Thursday, November 6, 2025, when shareholders will vote on Musk’s proposed compensation. The plan, tied to ambitious performance and market capitalization goals, has sparked debate among some of Tesla’s largest investors.
Smaller public pension funds, including the American Federation of Teachers and New York City retirement systems, have also said they will vote against the performance-based remuneration package, along with major proxy advisors Institutional Shareholder Services (ISS) and Glass Lewis. Musk, Tesla’s largest shareholder with about 15% of the voting power, can also vote on the proposal.
Supporters Defend Musk’s Role and Vision
Some investors have voiced their support for the package, arguing that Musk’s vision and execution are central to Tesla’s success. Baron Capital and the State Board of Administration of Florida have both stated they will vote in favor.
At the same time, market commentators, including Wedbush analyst Daniel Ives, CNBC’s Jim Cramer, and Ark Invest CEO Cathie Wood, have echoed this support, suggesting the pay plan aligns incentives with ambitious growth plans.
Tesla Chair Robyn Denholm has defended the proposal, warning that Musk might step back from Tesla if the compensation fails to pass. She emphasized that Musk’s leadership is vital to accelerating the company’s growth in AI and robotics.
Shareholders are expected to vote on re-electing board members and on a proposal asking Tesla’s board to invest in Musk’s AI company, xAI. As voting nears, the result will show whether investors trust Musk’s leadership more than they worry about governance and his influence over the company.
Is Tesla Stock Good to Buy?
On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 10 Holds, and 10 Sell ratings. The average Tesla price target of $395.54 implies 15.6% downside potential from current levels. Year-to-date, Tesla stock has gained nearly 16%.
