Musk's Net Worth Drops After Tesla Shares Fall
Elon Musk's net worth dropped by $17.5 billion after Tesla's shares fell over 5% during after-hours trading on Tuesday. This decline followed the public rejection of Musk's $1 trillion pay package by Norges Bank Investment Management, Norway's sovereign wealth fund.
Key Investor Opposition
Norges Bank was the first major institutional investor to oppose the massive remuneration proposal. The fund manages Norway’s $1.9 trillion sovereign wealth fund and expressed concerns about the plan’s size, potential share dilution, and executive risk mitigation.
"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 Stock and Musk's Wealth
- Tesla stock declined more than 5% in after-hours trading after Norges Bank’s announcement.
- Musk’s net worth decreased by approximately $17.5 billion, reducing his total to around $460 billion, according to Bloomberg’s Billionaires Index.
Musk's wealth is heavily tied to Tesla’s stock performance, making the company’s share value critical to his financial standing.
Norges Bank’s Ownership
The sovereign wealth fund holds a 1% stake in Tesla, influencing its decision to publicly oppose the pay package.
Author's Summary
Elon Musk’s proposed $1 trillion pay package faced strong opposition from a key investor, causing Tesla’s shares and his net worth to plunge sharply.