Norway’s $2 trillion sovereign wealth fund has announced it will vote against Elon Musk’s trillion-dollar compensation package at Tesla’s upcoming shareholder meeting, defying the company’s management and Musk’s warnings that he may step down if the proposal is rejected.

The fund, managed by Norges Bank Investment Management (NBIM) — the world’s largest sovereign wealth fund and a major Tesla shareholder — confirmed that it had already cast its vote opposing the compensation plan.

“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 said in its statement.

Despite acknowledging Musk’s transformative influence at Tesla, the fund emphasised its long-standing principles on pay transparency and risk control. “We will continue to seek constructive dialogue with Tesla on this and other topics,” the managers added.

The compensation package, one of the largest in corporate history, has sparked intense debate among investors. Musk has repeatedly suggested he may scale back his involvement with Tesla if the deal does not pass.

Tesla shares dipped 2.4% in pre-market trading following the announcement.