12:45 PM EST, 11/04/2025 (MT Newswires) -- Tesla (TSLA) shareholder Norges Bank Investment Management has decided to vote against the proposed $1 trillion compensation package for the electric vehicle maker's chief executive, Elon Musk, citing various concerns.

In September, Tesla's board proposed a new compensation package for Musk that includes a potential award of about 423.7 million shares in the company, to be granted in 12 tranches. To receive the full package, Musk will have to meet several targets, including driving the company's market capitalization to at least $8.5 trillion by 2035.

"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," Norges Bank said Tuesday. The investor holds a 1.14% stake in Tesla, according to its website.

The EV maker's shares were down 3.9% in Tuesday afternoon trade. So far this year, the stock has gained 11%.

Last week, Tesla Chair Robyn Denholm urged shareholders to vote in favor of the proposed compensation package, or risk losing Musk from the company. The company "could lose significant value" without Musk and may no longer be seen as a "transformative force" in the artificial intelligence field with its autonomous driving and robotics initiatives, Denholm said.

"Tesla is worth more than all other automotive companies combined," Musk said in an October post on the X social media platform, in response to a critic of the pay proposal. "Which of those CEOs would you like to run Tesla? It won't be me."

In October, proxy advisers Glass Lewis and Institutional Shareholder Services urged Tesla's shareholders to vote against the package at their Thursday meeting. Wedbush Securities said Monday it expected Musk to get "overwhelming" shareholder approval on the pay package.

Norges Bank said Tuesday it plans to "continue to seek constructive dialogue" with Tesla on the matter and other topics.

Tesla didn't immediately respond to MT Newswires' request for comment.

Last month, the company's third-quarter earnings fell more than expected, though record deliveries helped propel its revenue above Wall Street's estimates.

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