The $2 Trillion Standoff: Why a Giant Investor is Saying No to Elon Musk’s Historic Payday
In a dramatic move that is sending shockwaves through the corporate world, one of the world’s most powerful investors is taking a stand against the richest man on the planet. Norway’s colossal $2 trillion wealth fund has announced it will vote against a pay package for Elon Musk that could be worth nearly $1 trillion, setting the stage for a high-stakes showdown at Tesla’s annual meeting.
The decision by Norges Bank Investment Management (NBIM), which manages the fund, represents a major rebellion against Tesla’s board and directly challenges Mr. Musk’s leadership. It throws a significant hurdle in front of a compensation plan that would be the largest in American corporate history.
A Clash of Titans
The heart of the issue is a proposal from Tesla’s Board of Directors that would grant Musk a massive stock award, expanding his voting power and tying his wealth to the company achieving ambitious milestones over the next decade. With Tesla’s stock price having soared in recent years, the total value of the package is almost unimaginable to most people.
But for the Norwegian fund, size matters. In a statement, NBIM made its position clear.“Although we recognize the immense value generated through Mr. Musk’s visionary leadership,” the fund stated, “we remain concerned about the overall size of the compensation package, the resulting dilution, and the absence of safeguards against key person risk.”
In simpler terms, the fund is worried about three things: the sheer enormity of the payday, how it might reduce the value of shares held by other investors, and the danger of making one person so central to the company’s future.
This is not a small shareholder making noise. Norway’s fund is the largest of its kind in the world and owns a 1.14% stake in Tesla, an investment worth approximately $11.6 billion. Its vote carries serious weight.
Mounting Opposition and Musk’s Fury
The Norwegian fund is not alone in its concerns. The “Take Back Tesla” campaign, a coalition of unions and corporate watchdogs, has been urging shareholders to reject the deal. Two influential proxy advisory firms, Institutional Shareholder Services and Glass Lewis, have also recommended that investors vote “no.”
Elon Musk has responded with characteristic fire. On a recent call with analysts, he labeled the advisory firms “corporate terrorists.” He has also taken to his social media platform, X, to defend the proposal, arguing that Tesla’s extraordinary success under his leadership justifies the reward.
“Tesla is worth more than all other automotive companies combined,” Musk wrote last month. “Which one of those CEOs would you prefer to see leading Tesla?” It won’t be me.” This comment echoes his previous threats to step down or develop advanced AI and robotics products outside of Tesla if he is not granted greater control.
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A History of Tension
This is not the first time Norway’s fund and Musk have clashed over his pay. Last year, NBIM voted against reinstating a previous $56 billion pay deal after it was thrown out by a U.S. judge. That package was ultimately approved by shareholders despite the fund’s objections, but the friction left a mark.
Text messages later published by the Financial Times revealed a tense exchange between Musk and NBIM Chief Executive Nicolai Tangen. After Tangen declined a request from Musk, the Tesla CEO reportedly wrote, “When I ask you for a favor, which I very rarely do, and you decline, then you should not ask me for one until you’ve done something to make amends. Friends are as friends do.”
This personal history adds a layer of drama to the current corporate standoff. As the world watches, the vote is becoming more than just a decision on executive pay. It is a referendum on leadership, governance, and the limits of reward in modern capitalism. With the meeting just days away, all eyes are on Tesla to see if other major investors will follow Norway’s lead or side with the visionary, yet controversial, CEO.
Author: Yasir Khan
Date: 04 Nov, 2025
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