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Musk’s $1 Trillion Tesla Reward Meets Resistance from Norway’s Sovereign Fund

by

Norway’s $2.1 trillion sovereign wealth fund said it will
vote against Tesla CEO Elon Musk’s proposed compensation plan ahead of the
company’s November 6 meeting.

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The package could grant Musk shares worth up to $1 trillion
over ten years, making it one of the largest in corporate history.

Norges Bank Votes Against Tesla Compensation

Norges Bank Investment Management, Tesla’s seventh-largest
shareholder with a 1.12% stake worth about $17 billion, said it values Musk’s
contribution but is concerned about “the total size of the award, dilution, and
lack of mitigation of key person risk.”

The fund will also vote against two Tesla board
members—Kathleen Wilson-Thompson and Ira Ehrenpreis—and oppose the company’s
general stock compensation plan.

Major Investors Hesitate on Musk Package

Tesla’s board has urged shareholders to back the deal,
warning that Musk might leave if it is rejected. Critics, however, argue the
plan remains excessive even after deducting the share costs, which bring the
net potential value to about $878 billion.

According to the Reuters, major investors like BlackRock and
Vanguard have not revealed their votes, while Baron Capital said it will
support the plan. Musk’s earlier $56 billion package, approved in 2018, is
still under legal review.

Shareholders to Decide Tesla’s Future

The plan requires Musk to meet ambitious performance
targets, including growing
vehicle sales, producing autonomous robotaxis, and reaching an $8.5 trillion
market value
.

Proxy advisory firms ISS and Glass Lewis recommend voting
against it, citing its size and Musk’s influence over the board. Critics also
point to broader challenges, including aging car models, Chinese competition,
and expiring U.S. EV tax credits.

If approved and fully achieved, Musk could become the
world’s first trillionaire. The shareholder vote will determine both his future
at Tesla and the company’s direction in AI, robotics, and electric vehicles.

This article was written by Tareq Sikder at www.financemagnates.com.

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