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Norway’s $2.1 Trillion Wealth Fund to Vote Against Elon Musk’s $1 Trillion Tesla Pay Deal

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Norway’s sovereign wealth fund, the world’s largest, announced Tuesday that it will vote against Tesla CEO Elon Musk’s proposed $1 trillion compensation package — potentially the largest CEO pay deal in corporate history. The vote will take place at Tesla’s annual general meeting on November 6.

Tesla’s board is urging shareholders to approve the plan, warning that rejecting it could prompt Musk to leave the $1.5 trillion automaker. The proposal, however, has drawn criticism from investors and proxy advisory firms who say the package is excessive and could give Musk disproportionate control.

The Norwegian fund, officially known as Norges Bank Investment Management (NBIM), said while it recognizes the “significant value created” under Musk’s leadership, it is concerned about the award’s overall size, potential shareholder dilution, and Tesla’s heavy reliance on Musk’s role. NBIM also confirmed it would vote against Tesla’s general employee compensation plan and two of three board members up for re-election, including Kathleen Wilson-Thompson and Ira Ehrenpreis.

Musk’s proposed deal would grant him stock awards worth up to $1 trillion over 10 years, though Reuters estimates the actual value after cost deductions could total around $878 billion. The package would only fully vest if Tesla’s market value climbs to $8.5 trillion — roughly six times its current valuation.

Despite opposition from major investors, the pay deal is expected to pass due to broad shareholder support and Musk’s own 13.5% voting stake.

Tesla Profit Misses Expectations Despite Record Sales and Revenue

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Tesla posted record third-quarter revenue of $28.1 billion, surpassing analyst estimates of $26.37 billion, but profits fell short due to rising costs, tariffs, and shrinking regulatory credit income. Shares dropped 4% in extended trading as investors reacted to the weaker earnings and fading government incentives that have long supported electric vehicle demand.

Profit per share came in at 50 cents, below the expected 55 cents. The company cited over $400 million in tariff-related costs and a 50% increase in R&D spending, largely tied to AI and robotics projects. Regulatory credit sales fell to $417 million from $739 million a year earlier, signaling continued decline.

Tesla’s gross margin stood at 18%, slightly above estimates, while automotive margins excluding credits reached 15.4%. To sustain demand amid expiring U.S. tax credits, Tesla launched lower-cost “Standard” versions of its Model 3 and Model Y, though analysts warned the move could compress profits further.

Despite the short-term challenges, Tesla remains focused on expansion. CEO Elon Musk said production of the Cybercab robotaxi, Semi truck, and Megapack 3 battery is set for 2026. The company’s energy division grew 81% in storage deployments, and Musk confirmed plans for mass production of the humanoid robot Optimus by late 2026.

Tesla Set for Strong Quarter as Buyers Rush to Beat Expiring U.S. EV Tax Credit

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Tesla is expected to post a strong third-quarter performance, boosted by a surge in U.S. sales as customers rushed to buy electric vehicles before the $7,500 federal EV tax credit expired. The results, due later on Wednesday, will be closely watched for signals on how CEO Elon Musk plans to sustain growth amid tightening competition and political controversy.

The company’s new, cheaper “Standard” versions of its Model 3 and Model Y have driven fresh demand. These models are roughly $5,000 to $5,500 cheaper than earlier trims, featuring smaller batteries, weaker motors, and stripped-down interiors that omit rear screens and seat pockets. Tesla also temporarily reduced lease prices on premium versions to clear inventory.

However, these aggressive price cuts and feature reductions have squeezed profit margins, a growing concern for investors. Analysts estimate Tesla’s automotive gross margin, excluding regulatory credits, will fall to 15.6%, down from 17.05% a year earlier.

Tesla’s overall revenue is expected to rise 4.2% year-on-year to $26.24 billion, according to LSEG data, though analysts will also look for signs that sales of pollution credits — which Tesla sells to gasoline carmakers — have tapered off following Trump administration policy changes.

Beyond financials, investors are eager for updates on Tesla’s robotaxi rollout, which Musk has described as the company’s next growth engine. He has claimed Tesla’s robotaxis could serve half the U.S. population by year-end, though specifics remain elusive. Analysts at Cantor Fitzgerald said the top questions now involve “fleet size, cumulative miles, and service territories” expected by Q4 and 2026.

Despite a slowdown in sales of its aging lineup and consumer backlash linked to Musk’s far-right political rhetoric, Tesla shares have risen nearly 10% this year, buoyed by a proposed $1 trillion pay package for Musk. Still, Tesla remains one of the weaker performers among the “Magnificent 7” tech giants.

The earnings call, set for 5:30 p.m. EDT, may offer a clearer view of how Musk plans to balance his AI and robotics ambitions with Tesla’s core vehicle business — the source of most of its revenue today.