Folksam Sells Entire Tesla Stake Over Worker Rights Concerns

Folksam, Sweden's largest insurer, announced the sale of its entire stake in Tesla due to ongoing concerns about the company's approach to workers' rights. Despite attempts to influence Tesla through proposals at its annual general meetings over the past two years, Folksam noted that no improvements were observed, leading to their decision to divest. The insurer emphasized that Tesla's refusal to sign a collective bargaining agreement and allow union negotiations for its workers contributed to this action. This decision comes amidst broader criticism from other Nordic investors and unions regarding Tesla's labor practices. As Tesla faces significant challenges, including a decline in share value and increasing competition, the company has yet to respond to Folksam's concerns. The divestment highlights growing tensions between investors and Tesla regarding labor rights in the electric vehicle sector.