3w ago

Why one of Europe's largest pension funds sold its entire $585 million stake in Tesla

www.businessinsider.com A Dutch pension fund sold its entire stake in Tesla, reportedly worth $585 million

A Dutch pension fund sold its stake in Tesla because it disapproved of Elon Musk's pay package and the company's working conditions, a report says.

Summary

Dutch pension fund Stichting Pensioenfonds ABP sold its $585 million Tesla stake over concerns about Elon Musk's "controversial and exceptionally high" pay package and unspecified labor conditions.

ABP previously voted against Musk's performance-based compensation, which has faced shareholder lawsuits and judicial scrutiny.

A Delaware judge recently invalidated the pay package, citing insufficient shareholder approval.

While Tesla's Model Y remains popular in the Netherlands, European sales fell 15% in 2024.

ABP stated the divestment was not politically motivated despite Musk's ties to the Trump administration.

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75 comments

The only reason to hold Tesla right now is political. Do you believe Musk can continue sucking Trump's dick to profits? It's plausible...
Their cars are trash in the global market. China is owning everyone in the EV market. Domestically, they're not a bad buy used, but for their sticker price there's much more compelling options out there. The cybertruck is one of the worst products in automotive history. It'll be mentioned with the Pinto as far as engineering failures go.
- It's not necessarily political, wall street can be very clueless about technology. They all seem to believe they can judge the potential of just about any company, no matter how complex the industry, by merely watching a video of the CEO speaking and judging how smart they sound. Perceived potential can also be self-reinforcing because the more prominent a business figure gets, the more wall street reporters and influencers want to be associated with them - so they're careful to only praise them and not piss them off. So they can easily be duped by an Elizabeth Holmes/Adam Neumann type who has a strong voice and even stronger connections and promises the moon for a small investment.
  Musk's key innovation was taking that a step further and promising them Mars.
- Musk opposed Biden’s EV incentives because he wants to move everything to China
  Them being ahead is a reason to invest in Tesla
- Their cars are trash in the global market.
  Not true
  
  Ok their cars are trash no matter where they are. They have so many QC issues.
  
  Ironically, the international versions, made in China, are of a higher quality.

75 comments