Europe’s Largest Pension Fund Dumps Tesla

Europe's biggest pension fund liquidated its whole €571 million ($585 million) Tesla's interest

Written by: Olumide Adesina • Monday, January 13, 2025 • 1 min read

• Last updated: Monday, January 13, 2025

Europe’s biggest pension fund liquidated its whole €571 million ($585 million) Tesla’s interest because it disapproved of Elon Musk’s compensation package in the third quarter.

Tesla

Stichting Pensioenfonds ABP spokesperson stated on Sunday that “we had a problem” with Musk’s compensation package.

Het Financieele Dagblad, a Dutch newspaper, broke the story first and listed ABP’s concerns about the company’s working conditions as one of the reasons for leaving Tesla.

A Delaware judge invalidated Musk’s record-breaking Tesla compensation package last month even after shareholders supported the amounts and Musk urged her to change her mind. The pay package was voted down by ABP in June, citing it as “controversial and exceptionally high.”. The value of the stock options package increased from $2.1 billion to $56 billion before the judge canceled it.

According to a Wall Street Journal investigation released late last year, Tesla is in a precarious position.

The Austin-based Tesla Giga Texas factory, also known as Gigafactory Texas, is one of the targets of allegations of anti-pollution standard violations.

A defective foundry furnace at Gigafactory Texas, the location of the now-famous Cybertruck’s production, was found to have been operating for months. Because of this, hazardous materials were discharged into the atmosphere, and employees were exposed to temperatures as high as 100 °C.

More than 980,000 liters of caustic water containing sodium hydroxide were allegedly released into the Austin city sewer system by the plant. This discharge occurred over three days in September 2024 and is significantly above the permitted limits.

Nonetheless, the daily investigation presents a picture of Tesla as a business where environmental concerns are largely subordinated to productivity. Employees are also reportedly impacted, with some whistleblowers being fired after agreeing to privacy terms.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.