Stichting Pensioenfonds ABP Sells Tesla Stock

Europe’s largest pension fund Stichting Pensioenfonds ABP has sold its entire EUR 571 million (approximately USD 585 million) stake in Tesla Inc in the third quarter, partly due to disagreement with Elon Musk’s compensation package. First reported by Dutch newspaper Het Financieele Dagblad, the article stated that poor working conditions at the company were among ABP’s reasons for selling its stake in Tesla. A spokesperson for Stichting Pensioenfonds ABP was quoted saying, “We had a problem” to Bloomberg Sunday, referring to Musk’s USD 56 billion pay package which shareholders approved in June 2024. ABP voted against the pay package, calling it “controversial and exceptionally high”. The fund also considered costs, return and responsible investment requirements in its decision to sell its investment.

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Loss or Gain?

The result sees Stichting Pensioenfonds ABP missing out on future gains and all-time highs hit after the 2024 election. The stock options package was initially worth USD 2.6 billion, and spiked to USD 56 billion by the time the judge cancelled it. As it stands, Tesla is worth about USD 1.27 trillion and its stock has risen about 74 percent in the past year. According to Business Insider, Tesla’s Model Y was the best-selling car in the Netherlands in 2024, but the carmaker’s sales have been declining in Europe. New Tesla car registrations from January to November 2024 fell over 15 percent compared to the same period in 2023, according to European Automobile Manufacturers Association data.

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Rising Competition

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Similarly, the rise of Chinese automakers like BYD and NIO poses a direct threat to Tesla’s market share in Asia. These brands offer similar tech at more competitive prices, and in many cases, they outperform Tesla on range and features. China identified EVs as a strategic sector in the 2000s and has since employed a variety of policy measures, including over USD 230 billion in subsidies and decisive investments abroad, to gain an edge in low-cost EV manufacturing and target markets that have been traditionally dominated by Western and Japanese marques. China’s support for local EV manufacturers, including subsidies and infrastructure investment, puts Tesla at a disadvantage. In the long term, Tesla may find it harder to compete with domestic giants in the region.

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In a statement to the NL Times, Stichting Pensioenfonds 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 Trump and is co-leading a commission called the Department of Government Efficiency. As reported by Yahoo Finance, Tesla’s stock experienced significant growth following the election, reaching record levels in 2024 and propelling Elon Musk’s net worth to USD 400 billion. On 1 July, Tesla’s stock opened at USD 201.02 and closed at USD 261.63 by 30 September. Throughout the quarter, the stock fluctuated between a low of USD 182.00 and a high of USD 265.60.

Play for Politics

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Tesla stocks aside, tensions are growing within the right-wing movement over Elon Musk’s influence, with some conservative figures feeling disillusioned by his involvement in Republican politics. According to the Times of India, Musk — a key player in tech and government through Tesla and SpaceX — supports H-1B visas, clashing with figures like Steve Bannon, who view them as harmful to American workers. Bannon’s criticism extends to Musk’s role in U.S. politics, citing his South African roots and suggesting he “go back to South Africa.” The feud highlights broader ideological divides within Trump’s political faction.

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