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Europe's largest pension fund divests its entire Tesla (TSLA.US) portfolio due to Elon Musk's compensation package.

Market IntelSunday, Jan 12, 2025 7:50 pm ET

1min read

Europe's largest pension fund, Stichting Pensioenfonds ABP, sold its entire 571 million euros ($5.85 billion) stake in Tesla (TSLA.US) in the third quarter, partly due to a disagreement over Elon Musk's compensation.

A spokesperson for Stichting Pensioenfonds ABP said on Sunday, "We have objections to Musk's compensation package." The fund considered cost, return, and responsible investment requirements in its decision to sell its investments.

Dutch media also noted that poor working conditions were one of the reasons ABP gave up on Tesla.

Last month, a Delaware judge again rejected Musk's record-setting Tesla compensation package, despite shareholder support for the amounts, which Musk asked the judge to reconsider. The stock option package was originally valued at $2.6 billion and had soared to $56 billion by the time the judge canceled it.

In June, ABP voted against the compensation package, calling it "controversial and overpaid."

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