Tesla Blacklisted By Swedish Pension Fund AP7 Over Labor Rights Violation

Tesla Inc. (TSLA) has been blacklisted by Swedish pension fund AP7 over the company’s alleged violations of union rights in the U.S.

Tesla’s shares were down 0.82% at the time of writing.

The Swedish pension fund announced that it sold all of its stake in Tesla, which was worth 13 billion crowns ($1.36 billion) when it was offloaded in May.

“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,” the fund said in a statement.

The Tesla stake amounted to 1% of AP7’s Equity Fund – its assets stood at 1.181 trillion crowns at the end of May.

Tesla employed nearly 70,000 workers in the U.S. at the end of 2024. It is the only American automaker whose workers are currently not represented by a union.

Several unionization efforts have failed so far, including those by the United Auto Workers, the United Steelworkers, Workers United, and the International Brotherhood of Electrical Workers.

Tesla’s anti-union stance also irked UAW, which resulted in the Elon Musk-led electric vehicle giant being snubbed from former President Joe Biden’s EV summit in 2021. This was one of the catalysts in pushing Musk away from Democrats and into the Republican camp.

The company has also been at odds with IF Metall, a Swedish trade union. Workers affiliated with the union have been on strike against Tesla since October 2023.

As a result of a sympathy strike by the postal union, license plates for newly bought Tesla cars are currently not serviced by the union. Instead, Tesla has been asking car buyers to order the plates themselves, circumventing the union’s sympathy strike.

Tesla’s stock has declined 21% year-to-date, but it is up more than 75% over the past 12 months.

1 Swedish crown = 0.11 USD

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