Oslo/New York: Norway’s $2 trillion sovereign wealth fund has formally voted against Tesla’s massive compensation plan for CEO Elon Musk, marking a significant opposition from one of the automaker’s largest institutional shareholders.

Norges Bank Investment Management (NBIM), which manages the world’s largest sovereign wealth fund, announced on Tuesday that it had already cast its vote against the controversial package set to be decided at Tesla’s annual shareholder meeting this week.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk — consistent with our views on executive compensation,” NBIM stated.

The fund acknowledged Musk’s pivotal role in transforming Tesla into a global leader in electric vehicles but stressed that corporate governance must balance leadership vision with long-term shareholder protection.

Tesla shareholders are currently weighing whether to reapprove the multibillion-dollar compensation plan originally valued at $56 billion — one of the largest corporate pay awards in history. The package has faced legal challenges, and Musk has hinted he may reassess his involvement in the company if the deal is rejected.

“We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM added, signaling that its opposition is not a withdrawal of support for Tesla but a push for better governance safeguards.

Tesla shares fell about 2.4% in pre-market trading following the announcement, as markets reacted to growing investor scrutiny over the compensation plan and Tesla’s long-term leadership structure.

The upcoming vote is seen as a key moment for the future of Tesla’s leadership and vision, especially as the company navigates intensifying EV competition, delayed product timelines, and strategic focus on artificial intelligence and robotics.