ABP sells Tesla shares over labor and compensation concerns
ABP, the largest pension fund in the Netherlands, has sold all its shares in Tesla, citing dissatisfaction with CEO Elon Musk’s 56 billion dollars compensation plan and concerns about labor conditions at the company. The decision was confirmed by the fund following a report in Het Financieele Dagblad.
In late September, ABP divested its 2.8 million Tesla shares. “We cannot and do not need to invest in everything,” an ABP spokesperson stated.
ABP’s decision was influenced by a contentious executive compensation package for Musk. During the summer of 2024, Tesla leadership and shareholders debated the package after a U.S. court found shareholders were previously insufficiently informed. This ruling required a second vote on the matter.
“ABP ultimately voted against the proposal, but the majority of shareholders approved it,” the spokesperson noted.
Labor conditions at Tesla also contributed to the decision to divest, though details on specific concerns were not disclosed.
ABP emphasized that the divestment was not politically motivated. Musk, a prominent supporter of Donald Trump’s presidential campaign, is slated to head a new government division focused on efficiency under Trump’s administration.
Despite Tesla’s stock price increasing by more than 50 percent since the sale, ABP expressed no regrets. “We are long-term investors,” the spokesperson added.
