Tesla is facing investor ire for pushing a $1 trillion pay package for Elon Musk at a time when the company is “grappling with falling sales.”
Norway’s sovereign wealth fund, a $17 billion investor, announced it will vote “no.” The decision comes as data shows Tesla’s global vehicle deliveries fell 13% in the first half of the year.
The sales slump is especially severe in Europe. New car registrations in October plummeted 89% in Sweden, 86% in Denmark, and 50% in Norway. Shipments from its Shanghai factory also declined.
Despite this, Tesla’s board is asking for the record-breaking payout, which could make Musk the first trillionaire. Chair Robyn Denholm argues it’s essential to retain Musk to reverse the sales trend.
However, opponents, including advisory firms ISS and Glass Lewis, agree with the Norwegian fund, suggesting the “total size” of the award is unjustifiable given the company’s current performance.