Europe's Largest Pension Fund Sells Europe's Largest Pension Fund Sells $585 Mn Stake Over Elon Musk's Remuneration - Details

Partly due to disagreement on Elon Musk's remuneration package, Europe’s largest pension fund sold its entire €571 million ($585 million) stake in Tesla Inc. in the third quarter.

Musk's Pay Package : Spokesperson Issues Statement

“We had a problem” with Musk’s pay package, a spokesperson for Stichting Pensioenfonds ABP said by phone on Sunday, January 12, 2025, Bloomberg reported. The fund also considered costs, return, and responsible investment requirements in its decision to sell its investment.

The news was first reported by Dutch newspaper Het Financieele Dagblad, which also cited poor working conditions at the company among ABP’s reasons to ditch Tesla.

Last month, Musk’s record-setting Tesla pay package was struck down once again by a Delaware judge even after shareholders backed the amounts and Musk asked her to reconsider.

The stock options package was initially worth $2.6 billion and spiked to $56 billion by the time the judge canceled it.

In June, ABP voted against the pay package, calling it “controversial and exceptionally high.”, Bloomberg reported.

Tesla Stocks Overvalued?

A possible reason for withdrawing the amount is due to overvaluation of Tesla stocks as per a previous report by Bloomberg. 

Independent market watchers say The Tesla stock has been notably volatile throughout the year and is considered significantly overvalued. Many are of the view that it is not the type of stock you want your pension to be in.