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The CEO of Norway’s $1.9 trillion sovereign wealth fund may have clashed with Elon Musk over his controversial Tesla (TSLA) pay package, but that hasn’t shaken his long-term view on the EV maker.
Led by Nicolai Tangen, the Norges Bank Investment Management (NBIM) is one of Tesla’s top 10 shareholders, with a 1.1% stake. Last June, it voted against Musk’s $45 billion pay plan, which resulted in a public rebuke from Musk. But Tangen insists there’s no bad blood.
“I don’t think there’s any problems there,” Tangen told Yahoo Finance Executive Editor Brian Sozzi on a new episode of the Opening Bid podcast (watch above; listen below). On whether the two might patch things up, Tangen briefly mentioned the possibility, saying the duo are “professional.”
NBIM’s position in Tesla makes it one of the most influential voices in its shareholder base, not just because of its size, but because of its reputation for corporate governance and long-term investing. The fund holds nearly 1.5% of all listed companies worldwide; notable holdings include Nvidia (NVDA) and Google (GOOG).
Tangen, who was just reappointed to a second term as CEO of the fund, acknowledged the controversy around Tesla and Musk, from the CEO’s unpredictable social media posts to his political dustups, including a recent bout with President Trump.
“There are a lot of elements which impact the share price of this company,” Tangen said. “Tesla was one of the first electric cars into the Norwegian market, but in terms of the stock itself, I haven’t got a strong view.”
He added, “It’s a manufacturer, it’s a tech company. It’s all of the above.”
Those comments come as Tesla grapples with renewed scrutiny over its fundamentals. Last week, the company reported second quarter deliveries of 384,122 vehicles, a 13% year-over-year drop. In Europe, one of Tesla’s key markets, new car sales fell for the fifth consecutive month in May, down nearly 28% from the prior year.
William Blair analysts downgraded Tesla to Market Perform on Monday, warning that political and regulatory headwinds could weigh more heavily on the company than investors expect. In a note led by Jed Dorsheimer and Mark Shooter, the team flagged the loss of over $2 billion in annual credit revenue following the removal of corporate average fuel economy (CAFE) fines.
“Instead of dismantling the CAFE standards, the BBB removed the teeth,” they wrote, cautioning that the change could trigger a direct hit to Tesla’s profitability and pressure its margins. The firm also slashed its earnings forecast for 2025 by 39%. The analysts estimated that 75% of Tesla’s environmental credit revenue, which made up 16% of its total gross profit in 2024, could vanish over the next two years.
Even so, some on Wall Street, including Piper Sandler, continue to see upside, especially when it comes to Tesla’s autonomous driving efforts. In a note led by Alexander Potter, the firm labeled Tesla as the “most transformative company in autos,” adding that in the long run, it was “likely to win.”
Meanwhile, Musk’s decision to enter the political fray, launching a new “America Party” over the July 4 weekend, has William Blair analysts questioning his focus. “We expect investors are growing tired of the distraction at a point when the business needs Musk’s attention the most,” the firm wrote, anticipating a downside from his “dip back into politics.”
Each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid Unfiltered. You can find more episodes on our video hub or watch on your preferred streaming service.
Francisco Velasquez is a reporter for Yahoo Finance. He can be reached on LinkedIn and X.
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