A swing county in Pennsylvania has decided that it will no longer purchase new Tesla stock, citing CEO Elon Musk’s political activities and the company’s declining shares.
Lehigh County, located toward the east of Pennsylvania with a relatively affluent population that is often a swing county, has a county pension board that oversees $500 million in assets. It is the first known US pension fund to stop purchasing new Tesla stock.
“Elon Musk’s choice to become a political figure rather than a customer-focused leader has compromised the Tesla brand,” Mark Pinsley, the Lehigh County controller who first introduced a motion to cease Tesla investments, said in a joint statement with organizers of Tesla Takedown.
“Tesla’s earnings are down 71% from a year ago, their auto revenues have dropped 20%, and profitability has taken a sharp dive,” Pinsley added. “We owe it to our retirees and taxpayers to take a hard look at whether these are wise investments at this time.”
On Tuesday, the board not only voted to hit the brakes on new Tesla investments in a 4-2 decision, it has also and directed the county’s investment manager to draft a report outlining options to divest its passively managed funds from Tesla.
The Lehigh County Controller’s Office and Tesla did not immediately respond to requests for comments.
Pinsley and the retirement board of Lehigh County aren’t the only ones concerned about pensions invested in Tesla.
In March, a group of 51 New York State legislators called on the state to divest its $1 billion in Tesla holdings. A top contender in the New York City Comptroller race has pledged to pull the city’s $300 billion pension portfolio out of Tesla if elected.
Brad Lander, the current New York City Comptroller, has also been vocal about his dissatisfaction with Musk’s leadership, but stopped short of calling for a divestment in his office’s latest response to BI in April. The city’s five public pension systems held more than 3 million Tesla shares worth about $1.26 billion on December 31, 2024, yet this figure has shrunk to $831 million by March 28, according to the comptroller’s office.
In April, eight state treasurers penned a joint letter to Tesla’s board to express concern over Musk’s lack of focus on Tesla, and the American Federation of Teachers is pressing major asset managers — including BlackRock and Vanguard — to consider divestment.
Beyond the US border, the Netherlands’ largest pension fund offloaded its $600 million stake in Tesla in January. Denmark’s $20 billion pension fund, AkademikerPension, followed suit in March. Recently, Canada’s largest public-sector union also urged national pension funds to cut ties with Tesla, though divestments have yet to happen.
Tesla has been facing growing pressure over Musk’s governance of the company and his political activity.
The Tesla Takedown movement that emerged in protest of Musk’s involvement in the White House DOGE office is aiming to evolve beyond demonstrations. The movement’s next goal is to helping cities and states develop resolutions to divest in “all things Musk,” according to a statement on April 22 after Tesla reported earnings.
As of May 6, Tesla stock has declined more than 27% since the beginning of 2025, and its Q1 revenue missed expectations. Musk has announced during the latest earnings call that he will be stepping back from his political activities at the White House.
Marketing experts have previously told BI that Tesla has alienated its core customer base, and that rebranding efforts may require significant concessions from Musk.
“To some degree Musk can say, ‘I don’t care because I’m so rich and I’ve got so many other entities that I could afford to lose a lot of money.'” David J. Reibstein, professor of marketing at the Wharton School, previously told BI. “But for the other shareholders who are bailing on the company, that’s problematic.”
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