Elon Musk is asking for a $1 trillion “favour” from shareholders, and one of his largest investors is refusing to grant it. Norway’s sovereign wealth fund, which holds a $17 billion stake, will vote “no.”
This echoes a previous conflict. When the fund voted against Musk’s $56 billion package, Musk declined a dinner invite from its CEO, reportedly texting, “When I ask you for a favour… and you decline, then you should not ask me for one.”
The fund is standing firm on its governance principles. It stated it is “concerned about the total size” of the new $1 trillion award and the “dilution” it would cause.
The Tesla board, led by Robyn Denholm, is making an urgent plea for approval. She has warned that the company risks losing “significant value” if Musk, who has hinted at his unhappiness, is not retained.
With advisory firms ISS and Glass Lewis also opposing the deal, the “no” campaign has significant momentum heading into Thursday’s vote.