Investing.com-- Folksam Group- Sweden’s biggest life insurer, said on Wednesday that it had divested the entirety of its holdings in Tesla (NASDAQ:TSLA) on concerns over worker rights violations by the electric car maker.
Folksam- one of Sweden’s biggest investors- said that Tesla’s approach to worker rights violated its criteria for investment, while dialogue with the EV maker had proven to be unsuccessful. This drove its decision to offload its stake in Tesla, Folksam said in a statement on its website.
It was not immediately clear just how many shares Folksam held in Tesla. Folksam is valued at about SEK 823 billion ($82.31 billion).
The company, along with several major Nordic pension funds and unions including KLP and PensionDenmark, have been urging Tesla to respect collective bargaining rights for its employees in the region.
Tesla has so far declined to sign a collective bargaining agreement, and is at the center of a major dispute with Swedish labor unions. Several Swedish workers at the company have gone on repeated strikes since late-2023.
Folksam and its Nordic peers had proposed at Tesla’s 2024 annual general meeting that Tesla engage more with its worker groups, although Tesla’s management had largely opposed the proposal.
The Elon Musk-led EV firm is nursing a severe drop in share valuation so far in 2025, as it grapples with laggard sales, increased competition in China, and boycotts in several parts of the U.S. and Europe over Musk’s political actions.
Tesla’s shares are down about 29.2% so far in 2025.