Danish Pension Fund Dumps Tesla Over Labor and Governance Concerns

Danish pension fund AkademikerPension announced that it is blacklisting Tesla Inc. due to concerns over the company’s treatment of workers and the growing risks associated with CEO Elon Musk, Bloomberg News' Tim Quinson reported.

The fund, which manages more than $20 billion in assets, is selling its remaining 200 Tesla shares and placing the company on its exclusion list. I Photo: AkademikerPension

“Patience has a way of running out at some point,” said AkademikerPension CEO Jens Munch Holst. “We’ve now reached that point when it comes to Tesla.”

The fund, which manages more than $20 billion in assets, is selling its remaining 200 Tesla shares and placing the company on its exclusion list. This means neither AkademikerPension nor its external managers will be permitted to invest in Tesla moving forward.

At its peak, the fund’s Tesla stake was valued at 300 million Danish kroner ($45 million). However, Tesla’s stock has plummeted roughly 50% since the 2024 US election, wiping out over $750 billion in market value.

Holst, who recently withdrew a 3.3 billion kroner mandate from State Street Global Advisors over climate concerns, acknowledged Tesla’s pioneering role in the green transition.

However, he cited three major issues behind the decision to divest:

1. Tesla’s ongoing resistance to workers’ rights

2. Poor corporate governance

3. Musk’s increasing involvement in American and European politics

   
   

Holst emphasized that Musk’s political activities—especially his support for far-right candidates and the spread of misinformation—have created “considerable risks to returns.”

“In short, we believe Elon Musk is actively destroying Tesla’s brand and value,” Holst concluded.