Folksam Divests $160 Million Tesla Stake Over Labor Rights

Sweden's largest insurer, Folksam, has divested its $160 million stake in Tesla due to concerns over the company's handling of labor rights, particularly its refusal to sign a collective bargaining agreement with Swedish unions. Folksam characterized Tesla's approach to unionization as 'problematic' and noted that attempts to influence the company as a shareholder have been ineffective. This move follows a significant labor dispute involving the metalworkers' union IF Metall, which initiated a strike in late 2023 over Tesla's labor practices. The strike expanded into a broader conflict involving multiple unions and has led to a notable decline in Tesla's sales in Sweden, with a reported 63.9% drop in March. The backlash against Tesla has been exacerbated by CEO Elon Musk's association with controversial political figures, prompting calls for boycotts and increasing incidents of vandalism against Tesla properties. Folksam's divestment underscores mounting pressure on corporations to align with global labor rights standards.