Why is Tesla plummeting and Musk is angry?
Tesla was kicked out of the S&P 500′s ESG index. Tesla CEO Elon Musk responsed to the ESG metrics is “Devil Incarnate.”
In order to figure out the ins and outs of the thing, the first thing we need to know is "What is ESG?"
ESG - Environmental, Social and Governance
In my opinion, this non-financial auditing standard is usually used to measure a company's contribution and impact in our daily life, such as pollution, human rights and labor force etc. Many securities markets require listed companies to provide ESG reports as one of the indicators to measure company‘s market value. Different trading markets have different standards. However, this standard is controversial.
The S&P 500 ESG Index uses environmental, social and governance data to rank and effectively recommend companies to investors. Its criteria include hundreds of data points per company that pertain to the way businesses affect the planet and treat stakeholders beyond shareholders — including customers, employees, vendors, partners and neighbors.
Story back to $Tesla Motors(TSLA)$
Why Tesla was removed from S&P 500's ESG index? The officials said that Tesla’s “lack of a low-carbon strategy” and “codes of business conduct,” along with racism and poor working conditions reported at Tesla’s factory in Fremont, California, affected the score. Tesla’s handling of an investigation by the National Highway Transportation Safety Administration also weighed on its score.
What makes people incomprehensible is that $Exxon Mobil(XOM)$ has a higher score than ev maker Tesla, and even $Ford(F)$ has a higher score than Tesla. So, Mush twittes:
In an earlier tweet on Musk wrote: “I am increasingly convinced that corporate ESG is the Devil Incarnate.”
Story not finished. Not only Tesla, these giants have also been removed to the index.
$Berkshire Hathaway(BRK.B)$ $Johnson & Johnson(JNJ)$ $Meta Platforms, Inc.(FB)$ $Home Depot(HD)$ $Chevron(CVX)$ $Costco(COST)$
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Tesla stock plummetd in last trading session. Do you agree that it was caused by removed from ESG index? Or is there other reason?
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I didn't know $Tesla Motors(TSLA)$ got kicked out of ESG index... [Speechless]
What the... indeed is a scam... & how is Exxon rated the top 10... [Speechless]
It's a scheme I think...
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