Swedish insurer Folksam announced on Wednesday that it has divested its $160 million stake in Tesla, citing concerns over the automaker’s stance on labor rights.
Folksam highlighted that Tesla’s approach to employees’ right to unionize was “problematic” and inconsistent with the company’s investment criteria. Attempts to influence Tesla as a shareholder were deemed ineffective, prompting the decision to sell.
The divestment follows a prolonged labor dispute involving Tesla and Swedish unions, which began in late 2023.
The metalworkers’ union, IF Metall, initiated a strike in October of that year after Tesla declined to sign a collective wage agreement. The strike, which initially involved 130 mechanics in 10 Tesla repair shops across seven cities, later expanded to other repair shops servicing multiple brands and grew into a wider conflict involving nearly a dozen unions.
Neighboring Nordic countries also joined the efforts to defend Sweden’s labor model, which relies on collective agreements covering the majority of employees.
Tesla’s rejection of global unionization efforts under CEO Elon Musk has drawn criticism and fueled calls for boycotts. Musk’s close ties to former U.S. President Donald Trump have further intensified backlash, leading to protests in North America and Europe as well as acts of vandalism targeting Tesla charging stations and dealerships.
The labor disputes appear to be impacting Tesla’s market performance in Sweden, where sales plummeted 63.9 percent in March and 55.2 percent in the first quarter, according to Mobility Sweden.
Folksam’s decision underscores growing pressure on corporations to align with labor rights and workplace standards globally. The automaker has yet to comment on Folksam’s divestment or the ongoing labor dispute.
