Swedish pension fund AP7 "blacklists" Tesla, Inc. (TSLA.US), sells off $1.36 billion in shares, citing infringement of labor rights.

Sweden's pension fund AP7 announced on Friday that it has blacklisted and divested all its holdings in the US electric vehicle manufacturer Tesla, Inc. (TSLA.US) due to allegations of labor rights violations in the US. The fund liquidated its entire stake in Tesla, Inc. at the end of May, when it was valued at approximately $1.36 billion, representing about 1% of AP7's equity fund. In recent years, some pension and retirement funds have also sold off portions of their Tesla, Inc. shares due to reasons including the involvement of Tesla, Inc.'s CEO Elon Musk in politics. Although Tesla, Inc.'s stock has brought substantial returns to many funds over the past decade, fund managers believe that Musk's freedom of speech does not excuse other issues. However, AP7 clarified that the decision to blacklist Tesla, Inc. was not based on Musk's political views or involvement in government affairs. The fund stated that they had verified multiple instances of Tesla, Inc. violating labor rights in the US. In a statement, AP7 said: "AP7 has decided to blacklist Tesla, Inc. due to confirmed labor rights violations in the US. Despite years of dialogue with Tesla, Inc. and collaborating with other investors to propose shareholder resolutions, the company has not taken sufficient measures to address these issues." According to the AP7 official website, the fund's total assets were 1.181 trillion Swedish kronor as of the end of May. Media reports suggest that in recent years, Tesla, Inc. has faced a series of labor-related lawsuits, which is not uncommon for many large corporations. These include allegations of restricting actions supporting unionized workers. For example, there have been accusations that Tesla, Inc. received preferential treatment from judges and did not allow employees to wear clothing supporting unions at the factory. Tesla, Inc. argued that loose clothing posed safety risks, a stance supported by the court. Additionally, former elevator contractor Owen Diaz accused Tesla, Inc.'s factory of racial discrimination. Initially awarded $137 million in compensation by a jury, US District Judge William Orrick deemed the amount excessive and reduced it to $15 million. Diaz refused to accept this and another jury later awarded him $3.2 million, with Diaz's legal team arguing that this amount was insufficient. Ultimately, Diaz reached a settlement with Tesla, Inc. for an undisclosed amount. This article is excerpted from "Wall Street News," author: ; GMTEight Editor: He Yucheng.