Swedish insurance company Folksam has divested its $160 million investment, in Tesla due to worries about the companys approach to labor rights issues. This move comes at a time when Tesla is embroiled in conflicts with labor unions regarding its resistance, to entering into a wage agreement.
“Folksam raised concerns, about Teslas approach to union rights as ‘troubling’. Expressed frustration over attempts to engage with the company as a shareholder.” The insurance company highlighted Swedens labor system based on collective bargaining agreements that ensure pay and working conditions, for 90 percent of workers.
The conflict started in 2023 when IF Metall initiated a strike, against Tesla—a Swedish metal workers union fuelled the dispute which later expanded as dockworkers and postal employees united with support from neighboring unions in the cause against Teslas CEO Elon Musks opposition, to unionization.
The effects of the labor dispute can be seen in the sales figures of Tesla, in Sweden recently.In March Tesla experienced a 63 point decrease in sales and a decrease of 55 percent in the first quarter of 2025.The incidents of vandalism targeting Tesla charging stations and showrooms are also, on the rise.
Tesla is holding its ground despite increasing pressure; however the company is encountering challenges in Sweden as investors withdraw and sales decrease.
