FIFA giving out a peace prize is like Blackrock giving out an award for ethics.
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Many investors have come out in support of the package, including Baron Capital Management, whose founder called Musk indispensable to the company. “Without his relentless drive and uncompromising standards,” wrote founder Ron Baron, “there would be no Tesla.”
Critics include the biggest in the US public pension fund, Calpers, and Norway’s sovereign wealth fund, the world’s largest. They argue the pay is excessive, with the Norway fund expressing concern that the board that designed it, which includes Musk’s brother, is not independent enough. That echoes a decision from a Delaware court nearly two years ago that blasted the process for approving a previous Musk pay package as “deeply flawed” given his “extensive ties” to directors.
Even the Vatican has weighed in, decrying the wealth gap in the world and blasting the trillion-dollar offer in particular.
The world's largest sovereign wealth fund has rejected Elon Musk's $1 trillion Tesla pay package
Elon Musk's relationship with BlackRock is multifaceted, most notably through their roles as major shareholders in
Tesla Inc. and as partners in an AI infrastructure initiative involving Musk's xAI company, Microsoft, and other investors. As one of Tesla's largest institutional investors, BlackRock's voting on Musk's compensation has been a significant point of discussion.
As a shareholder in Tesla
- BlackRock and Vanguard are among Tesla's two largest institutional shareholders, holding approximately 6-7% of the company's shares each.
- Their decisions on proxy votes, including Musk's compensation packages, can significantly influence the outcome.
- In some instances, BlackRock has voted against management recommendations, such as a proposal to replace Elon Musk as Tesla's chairman in 2018, though this has not been the case in recent discussions about his pay.
- In early November 2025, BlackRock, along with other large shareholders, was still deciding on Musk's latest pay package, which was facing opposition from proxy advisors and other large investors.
As a partner in an AI infrastructure initiative
- In March 2025, BlackRock partnered with Microsoft to launch an initiative that included Elon Musk's xAI.
- The partnership aims to develop US$30 billion (approximately $47.4 billion AUD) in data centers and AI infrastructure.
- The investment partnership, called the Global AI Infrastructure Investment Partnership (AIP), is intended to mobilize up to $100 billion when including debt financing.
- Nvidia has also joined the partnership as a technical advisor.