, Norway's $1.7 trillion sovereign wealth fund has announced its decision to vote against the proposed $56 billion pay package for Chief Executive Officer Elon Musk. The move adds to the growing opposition faced by the electric carmaker ahead of its annual general meeting next week.

The Norwegian fund, known as Norges Bank Investment Management (NBIM), expressed concerns over the magnitude of the award, its performance triggers, dilution effects, and the lack of risk mitigation for key individuals within the company. In a statement released on Saturday, NBIM stated, "We remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk."

This upcoming shareholder vote will mark the second time Musk's pay package has been presented to shareholders. The initial vote approving the package in 2018 was later voided by a Delaware judge due to insufficient disclosure of key details. Proxy advisers Institutional Shareholder Services and Glass Lewis & Co. have also recommended that investors reject the proposal.

NBIM had previously voted against the pay package in 2018, despite around three-quarters of investors supporting it at the time. NBIM's decision on this matter aligns with its previous stance, and the fund intends to continue engaging Tesla in constructive dialogue on this and other relevant topics.

It is important to note that while the outcome of the shareholder vote is only advisory, a loss would be a significant embarrassment for Tesla's board and its top executive, Elon Musk. Musk has previously threatened to shift production outside of Tesla if he is unable to increase his equity holdings in the company, a move that the proposed pay package would facilitate.

Aside from opposing Musk's pay package, NBIM announced its intention to support a management proposal to relocate Tesla's corporate home from Delaware to Texas. Additionally, the fund plans to back a shareholder proposal urging Tesla to adopt new policies related to collective bargaining and freedom of association. This proposal is a response to a prolonged strike by Swedish Tesla technicians and has garnered support from major asset owners in the Nordic region.

Tesla, on the other hand, has urged its shareholders to vote against the latter proposal, emphasizing the company's commitment to safeguarding its employees' rights.

As of the end of 2023, NBIM held a 0.98% stake in Tesla, valued at $7.72 billion. The fund discloses its voting intentions five days ahead of the annual general meetings of the companies in which it invests.

The stakes are high as Tesla's battle over Elon Musk's pay package heats up, with shareholders set to decide the company's path forward in the coming days.