By Dominic Chopping
STOCKHOLM--Swedish insurer Folksam sold its entire $160 million stake in Tesla, citing concerns surrounding unionized employees' union-related rights.
The U.S. electric vehicle maker has been embroiled in a dispute with Nordic unions since the end of 2023, when workers at Sweden's IF Metall union began striking in a move aimed at pressuring the company to sign a collective bargaining agreement.
The union has demanded better wages, benefits and conditions for mechanics at Tesla workshops, and insisted that workers should have the right to engage in collective bargaining--a union contract that is common in Europe.
"Collective agreements are the backbone of the Swedish model," IF Metall says in a statement on its website.
Other unions from across the region have joined in solidarity strikes, with dockworkers refusing to offload vehicles, truck drivers halting transport of the cars, electricians refusing to work on Tesla charging stations, and postal workers not delivering anything to Tesla's workplaces.
Tesla didn't respond to a request for comment, but Chief Executive Elon Musk has previously said he is opposed to unions.
In a statement Wednesday, Folksam said that because the situation involves employees' union rights, it is problematic in terms of its investment criteria. It said it has tried, with other shareholders, to influence Tesla through proposals submitted to the company's annual general meeting two years in a row, but without success.
"Trying to influence our holdings through ownership control is important for the Folksam Group, but now we see no possibility of achieving a change and therefore we have divested the entire holding," said Marcus Blomberg, Folksam's Head of Asset Management and Sustainability.
Folksam's holding had a market value of 1.6 billion Swedish kronor ($159.7 million) and the insurer sold the shares over the last couple of days, a spokesperson said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 02, 2025 10:23 ET (14:23 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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