Norway’s Fund to Vote Against $1 Trillion Musk Deal, Cites Dilution

Norway’s sovereign wealth fund, a top-seven investor in Tesla, will vote against Elon Musk’s $1 trillion compensation plan, citing concerns that the deal is too large and will dilute the value of other shareholders’ investments.
The fund, which holds a $17 billion stake, said in a statement that it was “concerned about the total size of the award, dilution and lack of mitigation of key person risk.” The decision adds a powerful voice to the opposition camp.
The proposal, which will be voted on this Thursday, would grant Musk new shares pushing his stake from 16% to over 25% if he can increase Tesla’s valuation to $8.5 trillion over the next decade.
This deal is being pushed by the Tesla board as essential for retention. Chair Robyn Denholm has argued that failing to secure Musk’s leadership could lead to a “significant value” loss for the very shareholders the Norwegian fund seeks to protect.
This is a familiar fight. The Norwegian fund also voted against Musk’s previous $56 billion package. That deal was approved by shareholders but later rejected by a Delaware court, setting the stage for this new, even more ambitious proposal.