On June 13, Sweden’s pension fund AP7 suddenly announced that it had blacklisted American electric vehicle giant Tesla and liquidated all its holdings in Tesla. According to a statement from AP7, after thorough investigation, it confirmed that Tesla had violated labor rights in the United States. AP7 had been in communication with Tesla for years and had even joined other investors in submitting shareholder proposals, urging Tesla to pay attention to and improve labor rights issues. However, Tesla never provided a satisfactory solution to AP7. As of the end of May, when AP7 liquidated its holdings, Tesla’s market value was around $1.36 billion, accounting for 1% of AP7’s equity fund.
In AP7’s investment philosophy, corporate social responsibility and ethical standards are of paramount importance. They have always adhered to the principle of sustainable investment, focusing on a company’s performance in environmental protection, social responsibility, and corporate governance. Therefore, when Tesla’s labor rights issues remained unresolved, AP7 took decisive action, blacklisting Tesla and liquidating its shares to demonstrate its zero-tolerance stance on such matters.
Tesla’s labor rights controversies have long been a source of public concern. As early as 2017, Tesla was accused of implementing policies that prevented workers from forming unions. The National Labor Relations Board (NLRB) in the United States filed a complaint claiming that Tesla had enacted and maintained a public space policy that restricted employees from “recording, collecting opinions without authorization, or promoting,” as well as from “creating channels and distributing lists,” all in an effort to prevent workers from forming, joining, or assisting unions. In addition, Tesla banned workers at U.S. factories from wearing union T-shirts. Although a federal appellate court in the U.S. ultimately ruled that Tesla’s actions did not violate labor law, the incident sparked widespread attention and controversy. AP7’s decision to blacklist Tesla is not an isolated case.
In the third quarter of 2024, Europe’s largest pension fund, ABP, made a shocking decision—to “liquidate” all its €571 million ($585 million) worth of Tesla shares. A spokesperson for ABP stated that they had concerns about Elon Musk’s compensation package, deeming it “controversial and excessively high.” When making the decision to sell the shares, ABP also took into account costs, returns, and the requirements of responsible investment.
In March of this year, Denmark’s Akademiker Pension pension fund added Tesla to its “blacklist” due to concerns over Tesla’s labor rights and Musk’s behavior, selling its Tesla holdings. Akademiker Pension stated in a statement that Tesla had long resisted labor rights, faced issues with corporate governance, and that Musk frequently interfered in European political affairs and spread misinformation, all of which posed significant risks to investment returns. At its peak, Akademiker Pension’s Tesla holdings were valued at DKK 300 million (approximately RMB 330 million).
The successive actions of European pension funds demonstrate that Tesla is facing a serious trust crisis in the European pension fund sector. Pension funds, as long-term investors, typically place great importance on corporate social responsibility, governance, and management stability. Tesla’s issues with labor rights, corporate governance, and Musk’s personal behavior have caused these pension funds to worry about its future development, leading them to choose “blacklisting” or liquidating their holdings.
It is known that Musk, as one of Donald Trump’s main supporters during the U.S. presidential campaign, helped drive Tesla’s rapid rise after Trump won the election. In December 2024, Tesla’s stock hit an all-time high of $488.54 per share. However, with Tesla’s sales declining, institutional investors repeatedly raised concerns about Musk’s inability to focus on Tesla, causing the stock price to “halve” at one point. Currently, Tesla’s stock price stands at $325.31 per share, with a total market value of $1 trillion.
