Musk's Net Worth Plunges as Tesla Shares Slide After Pay Rejection
Elon Musk’s wealth dropped by around $17.5 billion after Tesla’s stock fell 5% in after-hours trading. The decline followed news that Norges Bank Investment Management, Norway’s sovereign wealth fund, had opposed Musk’s proposed $1 trillion compensation plan.
Investor Opposition
Norges Bank was the first major institutional investor to publicly reject the pay proposal. It cited major concerns about the plan’s size, share dilution, and the absence of measures to reduce 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.”
Market Reaction and Impacts
The announcement triggered a sharp decline in Tesla’s stock, with shares losing over 5% on Tuesday evening. As Tesla’s value dropped, Musk’s net worth fell to approximately $460 billion, based on data from Bloomberg’s Billionaires Index.
Norges Bank Investment Management manages Norway’s $1.9 trillion sovereign wealth fund and holds about 1% of Tesla’s shares.
Author’s Summary
Musk lost $17.5 billion overnight after Tesla’s 5% drop, driven by a major investor’s rejection of his record $1 trillion pay package.