Tesla shareholder meeting updates: Elon Musk's $1 trillion pay package is on the line

Core Points - Tesla's annual shareholder meeting is taking place, with a focus on multiple proposals including Musk's compensation package and potential investment in his AI startup, xAI [1][2] - The new compensation plan for Musk is tied to ambitious targets, including increasing Tesla's market cap to $8.5 trillion by 2035 and selling 12 million vehicles annually [3] - Proxy advisory firms have recommended rejecting Musk's pay package, citing concerns over "key person risk" and the lack of mitigation strategies [4] Proposal Details - Shareholders will vote on Musk's pay package, which has been controversial and is linked to significant performance goals [2][3] - The proposal includes allocating 208 million shares to address uncertainties surrounding Musk's previous pay package, which is entangled in legal issues [2] Institutional Investor Stance - Norges Bank Investment Management, managing Norway's $2 trillion sovereign wealth fund, has voted against Musk's compensation due to concerns about key person risk [4] - The fund is noted as Tesla's sixth-largest institutional shareholder, highlighting the significance of institutional investor opinions on the proposal [4] Market Context - Tesla's shares have rebounded from earlier declines, but the company faces challenges such as the expiration of EV tax credits in the US and rising competition from other automakers [5]