Tesla investors are ditching Charles Schwab as their brokerage after the firm said earlier this week that it would vote against CEO Elon Musk’s new compensation package.

Several high-profile Tesla influencers are speaking out against Charles Schwab, saying its decision to vote against the plan that would retain Musk as CEO and give him potentially more voting power if he can achieve the tranches set by the company’s Board of Directors.

The Tesla community recognized that Schwab is one firm that tends to vote against Musk’s compensation plans, as they also voted against the CEO’s 2018 pay package, which was passed by shareholders but then denied by a Delaware Chancery Court.

Schwab’s move was recognized by investors within the Tesla community and now they are speaking out about it:

Hey @CharlesSchwab – I need to speak with someone from Schwab Private Wealth Services this week. Please reach out via email, the mobile app message center, phone, or X DM.

Here’s why this is urgent: At least 6 of your ETF funds (around 7 million $TSLA shares) voted against… https://t.co/uSgPWnfTFc

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— Jason DeBolt ⚡️ (@jasondebolt) November 3, 2025

If @CharlesSchwab doesn’t vote for Elon Musk’s 2025 CEO Performance Award plan, I’ll move all my assets to another brokerage. My followers, many of whom also hold assets with Schwab and collectively own at least hundreds of millions in $TSLA, may do the same.

I can’t in good… https://t.co/6iUU6PdzYx

— Sawyer Merritt (@SawyerMerritt) November 3, 2025

ready to help with the @CharlesSchwab exodus

— Gali (@Gfilche) November 3, 2025

At least six of Charles Schwab’s ETFs have voted against Tesla’s Board recommendation to support the compensation plan for Musk. The six ETFs represent around 7 million Tesla $TSLA shares.

Jason DeBolt, an all-in Tesla shareholder, summarized the firm’s decision really well:

“As a custodian of ETF shares, your fiduciary duty is to vote in shareholders’ best interests. For a board that has delivered extraordinary returns, voting against their recommendations doesn’t align with retail investors, Tesla employees, or the leadership we invested to support. If Schwab’s proxy voting policies don’t reflect shareholder interests, my followers and I will move our collective tens of millions in $TSLA shares (or possibly hundreds of millions) to a broker that does, via account transfer as soon as this week.”

Tesla shareholders will vote on Musk’s pay package on Thursday at the Annual Shareholders Meeting in Austin, Texas.

It seems more likely than not that it will pass, but investors have made it clear they want a decisive victory, as it could clear the path for any issues with shareholder lawsuits in the future, as it did with Musk’s past pay package.

Norway’s $2 trillion sovereign wealth fund has voted against Elon Musk’s 2025 performance award, which will be ultimately decided at Tesla’s upcoming annual shareholder meeting. 

The fund is managed by Norges Bank Investment Management (NBIM), and it holds a 1.14% stake in Tesla valued at about $11.6 billion.

NBIM’s opposition

NBIM confirmed it had already cast its vote against Musk’s pay package, citing concerns over its total size, dilution, and lack of mitigation of key person risk, as noted in a CNBC report. The fund acknowledged Musk’s leadership of the EV maker, and it stated that it will continue to seek dialogue with Tesla about its concerns. 

“While we appreciate the significant value created under Mr. Musk’s visionary role, 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. We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM noted.

The upcoming Tesla annual shareholder meeting will decide whether Musk should receive his proposed 2025 performance award, which would grant him large stock options over the next decade if Tesla hits several ambitious milestones, such as a market cap of $8.5 trillion. The 2025 performance award will also increase Musk’s stake in Tesla to 25%.

Elon Musk and NBIM

Elon Musk’s proposed 2025 CEO performance award has proven polarizing, with large investors split on whether the executive should be given a pay package that, if fully completed, would make him a trillionaire. 

Institutional Shareholder Services and Glass Lewis have recommended that shareholders vote against the deal, and initiatives such as the “Take Back Tesla” campaign have rallied investors to oppose the proposed performance award. On the other hand, other large investors such as ARK Invest and the State Board of Administration of Florida (SBA) have urged shareholders to approve the compensation plan. 

Interestingly enough, this is not the first time that Musk and NBIM have found themselves on opposing sides. Last year, NBIM voted against reinstating Musk’s 2018 performance award, which had already been fully accomplished but was rescinded by a Delaware judge.

Later reports shared text messages between Musk and NBIM Chief Executive Nicolai Tangen, who was inviting the CEO to a dinner in Oslo. Musk declined the invitation, writing, “When I ask you for a favor, which I very rarely do, and you decline, then you should not ask me for one until you’ve done something to make amends. Friends are as friends do.”

Tesla has begun production of the new Model Y trim at Gigafactory Berlin, the company’s production plant in Germany.

Tesla announced on Monday that its Model Y Standard configuration was officially being built at Giga Berlin, less than one month after the company officially announced the configuration early last month.

On October 7, Tesla announced the launch of the Model 3 and Model Y Standard trim levels, its answer to the call for affordable EVs within its lineup and its response to the loss of the $7,500 electric vehicle tax credit.

On October 3, Tesla started production of the vehicles in Germany:

Model Y Standard says „Hello World“ – Production at Giga Berlin has started today! pic.twitter.com/p37JIfJDIB

— Tesla Manufacturing (@gigafactories) November 3, 2025

The Standard iteration of the Model Y is void of many of the more premium features that are available in the Rear-Wheel-Drive, All-Wheel-Drive, and Performance trims of the vehicle are equipped with.

A few of the features of the Model Y Standard are:

• Single Motor configuration
• No rear touchscreen
• Textile seats with vegan leather, instead of all vegan leather
• 320-mile range
• No glass roof

The launch of the Model Y Standard was truly a move to help Tesla get vehicles into the sub-$40,000 price point, and although many consumers were hoping to see the company get closer to $30,000 with these cars, this is a great starting point.

Deliveries in the United States have already started, and it seems it will be a vehicle that will do one of two things: either push some consumers to finally make the jump to Tesla, or it will give car buyers another reason to buy the Premium trims, as they may feel the lack of features is not a good enough deal.

This is something we saw with the Cybertruck’s Rear-Wheel-Drive configuration, which launched last year and ended up being more of the latter option listed above.

The Tesla Model Y Standard is actually a great deal in Europe

It was only a $10,000 discount from the All-Wheel-Drive Cybertruck, but it also did not have adaptive air suspension, premium interiors, or the powered tonneau cover, which many people felt was too much of a sacrifice.

The Rear-Wheel-Drive Cybertruck was discontinued only a few months later.

It does not seem as if this is the case with the Model Y Standard, which already seems to be an attractive option to some buyers.