Musk's Net Worth Drops Amid Tesla Share Decline
Elon Musk's net worth decreased by $17.5 billion after Tesla shares fell over 5% during after-hours trading. This drop followed Norges Bank Investment Management's rejection of Musk's proposed $1 trillion pay package.
Investor Opposition to Pay Proposal
Norges Bank, managing Norway's $1.9 trillion sovereign wealth fund, was the first major institutional investor to publicly oppose the $1 trillion remuneration plan.
"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."
Market Impact and Net Worth Effect
- Tesla's stock plunged 5% after the announcement.
- This caused Musk's net worth, tied closely to Tesla shares, to drop to about $460 billion, according to Bloomberg's Billionaires Index.
Summary
The criticism from Norges Bank over the large pay package and potential risks led to a significant market reaction, sharply reducing Musk's net worth overnight.
Author's Summary
Elon Musk’s net worth plunged $17.5 billion as a major investor publicly opposed his $1 trillion pay plan, causing Tesla shares to fall over 5% after hours.