Lehigh County's pension board, overseeing $500 million in assets, voted to stop new investments in Tesla, citing concerns over CEO Elon Musk's political involvement. The decision, influenced by Tesla's significant revenue declinesâearnings reportedly down 71% and auto revenues down 20%âmarks the first case of a US pension fund taking such a measure. Controller Mark Pinsley emphasized the need to protect retiree investments as other global pension funds move to divest from Tesla amidst shareholder apprehensions regarding the company's potential future performance.
Elon Musk's choice to become a political figure rather than a customer-focused leader has compromised the Tesla brand, according to Lehigh County controller Mark Pinsley.
Tesla's earnings are down 71% from a year ago, their auto revenues have dropped 20%, and profitability has taken a sharp dive, Pinsley highlighted.
The Lehigh County board's decision marks a significant move as it is the first known US pension fund to stop purchasing new Tesla stock.
Global pension funds, including those in the Netherlands and Denmark, are also divesting from Tesla, showcasing broader concerns among investors.
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