Europe’s second largest pension fund sold its entire stake in Tesla

• Dutch pension fund ABP sold its stake in Tesla over Musk’s salary and working conditions at the company, according to a report.
• ABP disagreed with Musk’s compensation package and voted against it in June.
• ABP did not respond to a request for comment.

A Dutch public administration pension fund would have sold its entire stake in tesla about CEO disapproval Elon MuskSalary package and working conditions in the company.

Stichting Pensioenfonds ABP, one of Europe’s largest pension funds, sold 2.8 million shares of the electric vehicle maker in September because it disagreed with Musk’s salary packageThe Dutch media Het Financieele Dagblad reported on Friday. The report does not detail the fund’s specific concerns about working conditions at the company.

A spokesman for ABP, which manages $552 billion in total, did not immediately respond to a request for comment. Bloomberg reported that ABP’s stake in Tesla was valued at about $585 million.

In a statement to the NL Times, ABP said “we cannot and do not need to invest in everything” and that the divestment was not politically motivated. Musk has been a prominent supporter of President-elect Donald Trumpforks co-lead a commission called the Department of Government Efficiency.

In 2018, Tesla’s board of directors and shareholders voted in favor of a performance-based compensation plan. The same year, a shareholder sued Tesla and Musk, arguing that Musk influenced the board’s decision through his personal relationships with board members, including his brother. In January 2024, a Delaware judge ruled to void Musk’s compensation package, siding with a shareholder. The stock option-based package could be worth tens of billions of dollars.

In June, the electric vehicle maker held a second vote, leading to shareholder approval of Musk’s salary. The ABP voted against the pay package, calling it “controversial and exceptionally high.”

Last month, Judge Kathaleen St. J. McCormick once again ruled against the compensation package, saying that Tesla shareholder vote in June was not enough to pass the package.

tesla Model Y was the best-selling car in the Netherlands in 2024, but the automaker’s sales have increased state in decline in Europe. Registrations of new Tesla cars from January to November 2024 fell more than 15% compared to the same period in 2023, according to data from the European Automobile Manufacturers Association.

Tesla is worth about $1.27 trillion and its shares are up about 74% in the past year.

The company did not immediately respond to a request for comment.