Musk's Net Worth Declines After Tesla Shares Drop 5%
Elon Musk's net worth dropped by $17.5 billion following a 5% decline in Tesla's shares during after-hours trading on Tuesday. This decline occurred after Norges Bank Investment Management, Norway's sovereign wealth fund, publicly rejected Musk's proposed $1 trillion (£767 billion) pay package.
Investor Opposition to Musk's Pay Package
Norges Bank was the first major institutional investor to oppose the remuneration plan, raising concerns about its size, the dilution it could cause, and the risks associated with key person dependency. The fund manages Norway's $1.9 trillion (£1.4 trillion) sovereign wealth fund.
"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's Stock and Musk's Wealth
- Tesla's stock plunged over 5% after the rejection news.
- Musk's net worth, closely tied to Tesla shares, fell by about $17.5 billion (£13.4 billion) in one day.
- His net worth is now approximately $460 billion (£353 billion), according to Bloomberg's Billionaires Index.
Share Ownership
Norges Bank owns a 1% stake in Tesla.
"The rejection sent shockwaves through Tesla's stock, leading to a 5% decline during Tuesday's after-hours trading."
Summary: Elon Musk's $1 trillion pay proposal faced significant investor backlash, causing Tesla shares and his net worth to drop sharply in a single day.
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