Musk's Net Worth Drops After Tesla Shares Fall 5%
Elon Musk's net worth declined by $17.5 billion following a more than 5% drop in Tesla's stock price during after-hours trading on Tuesday. This happened after Norges Bank Investment Management, Norway's sovereign wealth fund, rejected Musk's proposed pay package worth $1 trillion (£767 billion).
Investor Opposition to $1 Trillion Pay Proposal
Norges Bank Investment Management was the first major institutional investor to publicly oppose the remuneration plan. The fund expressed concerns regarding the package's size, the potential dilution of shares, and the lack of measures to address key person risk.
"While we appreciate the significant value created under Mr Musk's visionary leadership, 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."
Impact on Tesla Shares and Musk's Wealth
The opposition triggered a sharp decline in Tesla's stock, which fell 5% in after-hours trading. Consequently, Musk's fortune, largely tied to his Tesla holdings, dropped by approximately $17.5 billion (£13.4 billion), reducing his net worth to around $460 billion (£353 billion), according to Bloomberg's Billionaires Index.
About Norges Bank Investment Management
- Manages Norway's $1.9 trillion (£1.4 trillion) sovereign wealth fund
- Owns a stake in Tesla (exact percentage not specified)
- Influential institutional investor concerned with executive pay and shareholder dilution
Elon Musk's proposed compensation package triggered significant investor backlash, causing a notable drop in Tesla's stock and a major loss in his net worth.