Swedish insurance giant Folksam Group has divested its entire stake in Tesla (NASDAQ: TSLA), citing the company’s failure to uphold worker rights standards. The decision underscores growing tensions between Tesla and Nordic labor unions, as the electric vehicle (EV) maker refuses to sign collective bargaining agreements.
Folksam, one of Sweden’s largest institutional investors, confirmed its decision on Wednesday, stating that Tesla’s labor practices violated its investment criteria. Attempts to engage in dialogue with the company were unsuccessful, leading to the full divestment.
- Folksam’s total assets under management: SEK 823 billion ($82.3 billion).
- Exact number of Tesla shares sold remains undisclosed.
The company joins a growing list of Nordic pension funds and unions, including KLP and PensionDenmark, that have pressured Tesla to recognize workers’ rights in the region.
Tesla Faces Rising Union Pressure in Sweden
Tesla has been at the center of a labor dispute in Sweden since late 2023, when employees launched repeated strikes over the company’s refusal to sign a collective bargaining agreement.
- Swedish unions demand formal negotiations to improve labor conditions.
- Tesla management has resisted union-backed proposals at shareholder meetings.
- Disruptions continue, affecting Tesla’s operations across the region.
Despite pressure from major institutional investors, Tesla has maintained its stance, arguing that its compensation structure is competitive without union intervention.
Tesla Stock Down 29% in 2025 Amid Growing Challenges
The labor conflict comes at a difficult time for Tesla, as the EV giant battles multiple headwinds:
- Weakening sales due to increased competition from Chinese automakers.
- Boycotts in the U.S. and Europe tied to CEO Elon Musk’s political actions.
- Stock price slump: Tesla shares are down 29.2% in 2025.
As investor concerns grow, Tesla’s ability to navigate labor disputes, market competition, and public perception will be critical in shaping its future.