Norway’s big government fund, a major investor in Tesla, announced on Tuesday it will vote against a massive pay package for CEO Elon Musk. This proposed deal could be worth up to $1 trillion for Musk.
The Norwegian fund, known as Norges Bank Investment Management (NBIM), is Tesla’s sixth-largest outside investor. Its decision was not entirely unexpected, as the fund often pushes for sound corporate practices. However, NBIM’s direct criticism of the pay and its plan to vote against two Tesla board members creates some uncertainty just before the shareholder meeting on Thursday. Experts in company management say other European investors might also follow Norway’s lead and vote against the deal.
Despite this opposition, many still expect Musk’s pay deal to win approval. He has received strong support from investors in the past, and a large number of individual shareholders also back Tesla. The company moved its headquarters to Texas last year, and the state’s laws allow Musk to vote his large shareholding. This gives him about 15.3% of the voting power, including shares he recently received.
Tesla’s board strongly encourages shareholders to approve the plan. Board Chair Robyn Denholm has even warned that Musk might leave the company if shareholders reject the deal. Francis Byrd, a partner at Alchemy Strategies Partners, noted that Norway’s decision will likely influence European voters. This is because European investors often focus on ESG (environmental, social, and corporate governance) principles when they invest.
Even with Norway’s opposition, Byrd and other consultants still believe Tesla’s recommendations will pass. So far, most major investors have continued to support Musk. NBIM, with its 1.12% stake, is the only of Tesla’s top 10 outside investors to share its voting plans before the meeting publicly.
Consultants also pointed out that major U.S. investors are currently under pressure from the Trump administration to criticize companies less publicly. This situation could make it harder to know how much opposition there truly is until the meeting day itself, according to Karla Bos, an independent governance consultant. “Less predictability is the key for 2025, especially for complicated votes like this one at Tesla,” Bos said.
