Norway’s Wealth Fund Rejects Elon Musk’s Historic Pay Package

When Tesla shareholders gave Elon Musk the green light for a pay deal worth up to $1 trillion, it made headlines around the world. But not everyone was on board. Norway’s massive sovereign wealth fund, one of Tesla’s largest external investors, voted a firm “no.”

On November 6, 2025, Tesla held a vote to approve a jaw-dropping compensation package for Musk. The plan ties Musk’s payout to performance. If he hits ambitious targets over the next ten years, he could walk away with stock worth a trillion dollars. This isn’t cash in his pocket right now. But if he wins, the payout will be unlike anything in corporate history.

Norway Steps in With a Hard “No”

Norway’s Norges Bank Investment Management (NBIM) wasn’t impressed. They manage a $2 trillion fund built from the country’s oil wealth, and they own a 1.14% stake in Tesla. That may sound small, but with Tesla’s market value over $1.4 trillion, that slice is worth billions. So when NBIM votes no, people pay attention.

Their reasoning? It came down to three points. First, the size.

GTN/NBIM stated that the package is simply too large. It is one thing to reward success, but a trillion-dollar carrot is extreme, even for Musk.

Second, dilution. Issuing more stock to pay Musk affects existing shareholders by shrinking the value of their shares. NBIM didn’t like that. And third, the risk. Musk is central to Tesla. If he walks, there is no safety net. The fund felt the plan didn’t deal with that risk properly.

NBIM stated that they respected Musk’s past achievements and praised his role in Tesla’s growth. But their no vote was about policy, not personality. They have taken tough stands on executive pay before, so this wasn’t out of character. Still, it put them at odds with most of Tesla’s investors.

Shareholders Back the Tesla Boss

Despite Norway’s pushback, over 75% of Tesla shareholders said yes. That level of support is huge. It shows that most investors still believe Musk is the driving force behind Tesla’s success. For them, it is simple. No Musk, no Tesla. And with competitors racing ahead in AI, robotics, and self-driving tech, they want him focused and committed.

However, the package isn’t a blank check. Musk only gets the full amount if he meets a list of bold goals. Tesla needs to reach a market cap of $8.5 trillion. That’s more than Apple, Microsoft, and Google combined. He also has to lead the company to deliver 20 million vehicles per year.

Additionally, Tesla must roll out 1 million robotaxis and 1 million Optimus robots. These targets are enormous, and some say they are barely realistic. But that is the point. If Musk pulls it off, the reward matches the risk.

Elon FP / IG / For Norway’s fund, this debate was about corporate governance. They want pay plans that align with shareholder value but stay within reason.

Tesla’s board backed the deal. They argued that if they don’t lock Musk in, he might shift his focus elsewhere. He already leads SpaceX, xAI, and other projects. Tesla doesn’t want to compete for his time. The board believes this package is the only way to keep him locked in for the next decade.

This Is NOT New for NBIM!

NBIM is known for being strict on these issues. They have voted against other massive CEO packages before. So their “no” didn’t come out of nowhere. But this time, their stance didn’t sway the vote.

The clash between NBIM and Tesla shows the growing tension between big investors and celebrity CEOs. Investors want accountability. But in Musk’s case, many see him as irreplaceable. That makes boards more willing to break the usual rules.