Shares in EV maker Tesla (TSLA) flattened today as Swedish pension fund AP7 revealed that it had blacklisted the stock, selling all of its shares.
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Labor Wrongs
AP7 said it had decided to “blacklist Tesla due to verified violations of labor rights in the United States.”
It added: “Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”
An AP7 spokesperson said the fund’s stake in Tesla was, when it was sold in late May, worth around 13 billion crowns ($1.36 billion). At the time, the stake represented around 1% of the AP7 Equity Fund.
Tesla does have a history with labor rights complaints and alleged bad practice.
Back in 2023, Tesla supervisors at a Florida service center violated U.S. labor law by telling employees not to discuss pay and other working conditions or bring complaints to higher-level managers.
Last year, the National Labor Relations Board accused Tesla of taking steps to keep employees in Buffalo, New York, from unionizing. The policy restricted Tesla workers from “recording, unauthorized soliciting or promoting,” and “creating channels and distribution lists.”
Climate Concerns
According to the International Trade Union Confederation, in the US, Tesla has aggressively violated the “right to organize, refused to engage in collective bargaining, and provoked unprecedented strike action for its subversion of social dialogue.”
AP7 didn’t stop with Tesla. It said that it had also blacklisted Chord Energy (CHRD) and Coterra Energy (CTRA) for not aligning their oil operations with the Paris Agreement energy transition plans to combat global warming.
Other companies on its blacklist include plane maker Airbus (EADSF) for “involvement in nuclear weapons,” and retail giant Walmart (WMT), also for violation of labor rights in the U.S.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 14 Buy, 12 Hold and 9 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $285.97 implying a 10.75% downside.
