Press Release 4/21

NJWFP, Climate Revolution Action Network call for New Jersey to Divest from Tesla Over CEO Elon Musk’s Attacks on Federal Workers

The letter calls for Tesla divestment in the wake of the company’s declining sales, plummeting stock as Musk attacks federal public workers

Trenton, New Jersey – In a letter to the State Investment Council, New Jersey Working Families and Climate Revolution Action Network are calling on the State of New Jersey to immediately divest its pension fund holdings from Tesla in response to the company’s declining sales and stock declines amid CEO Elon Musk’s attack on the federal workforce. 

The groups’ call for divestment comes as Musk has faced increased backlash over his role as the head of the so-called Department of Government Efficiency through “Tesla Takedowns” and as the head of the American Federation of Teachers, one of the nation’s largest public-sector unions, sent a letter to over 75 pension fiduciaries warning of the risks associated with Tesla stock.

“This decision is both a financial necessity and a moral imperative,” the letter reads. “With more than $210 million currently invested in Tesla stock — an asset that has lost over 25% of its value since January — our public pension is exposed to unacceptable risk.”

Forbes reported that Tesla’s stock has plummeted 50% since December. Tesla’s first-quarter car sales are at a three-year low, falling 13% from the fourth quarter of 2024. The letter also points out that other large state pension systems and state fiduciaries, such as California’s CalPERS and the New York State Common Retirement Fund, are reevaluating their stakes in the company to protect pension beneficiaries. 

“The consequences are real for New Jersey. When federal jobs are cut, state-level services are strained,” the letter concludes. “When public programs are privatized, our communities — especially working-class and vulnerable residents — pay the price. And when the pension fund bleeds from risky investments like Tesla, retirees suffer.”