COPENHAGEN (Reuters) -Sweden’s largest insurer Folksam said on Wednesday it has sold its stake in electric car maker Tesla (NASDAQ: TSLA ) over concerns about the company’s stance on workers’ rights.
Tesla, headed by billionaire Elon Musk, is facing a backlash from unions and some pension funds in the Nordic region over its refusal to accept a demand from Swedish mechanics for collective bargaining rights covering wages and other conditions.
Tesla did not immediately respond to a request for comment. The company has said it offers as good, or better, terms than those demanded by the unions.
Folksam said in a statement it had tried to influence Tesla, together with other owners, through proposals submitted to the company’s annual general meeting two years in a row.
"Unfortunately, no improvement has been seen and a decision has therefore been made to divest the holding," its head of asset management and sustainability Marcus Blomberg said.
Folksam’s holding amounted to 0.017% of Tesla and had a market value of 1.6 billion Swedish crowns ($159.98 million) at the time of divestment, a spokesperson said.
($1 = 10.0015 Swedish crowns)