Musk in criticism: Tesla investors fight with falling approvals!

Musk in criticism: Tesla investors fight with falling approvals!

In the past few weeks, the number of admission for Tesla has decreased in several European countries, including Germany, Great Britain, France and Sweden. This development is particularly noteworthy in view of the work of CEO Elon Musk, who is currently acting on behalf of US President Donald Trump in the government headquarters in order to advance a reform of the work of the authorities and to implement cost savings. This combination of Musk with political agendas causes unrest among European consumers who express their criticism.

The Situation presents investors with challenges, especially for those who focus on cost-effective ETF strategies with a focus on the environment, social affairs and good management (ESG). While Tesla acts heavily in the environmental reviews, the results in the social and governance-relevant areas are less pleasant. This means that investors have difficulty separating from an investment in Tesla, although there are clear limits for ESG strategies. It is crucial to weigh up which values are most important for investors, since a broader selection of investments usually has higher costs.

ESG controversy and musk

Another important aspect in the current discussion is Tesla's exclusion from the S&P 500 ESG Index. Margaret Dorn from S&P Dow Jones Indices explained that the assessment of Tesla had remained stable, but was exceeded by global competitors. Over 34 companies were removed during the annual restructuring, but Tesla's case is particularly striking because the company stands for environmentally friendly mobility. The reasons for this exclusion include reports on racist discrimination in a workshop and legal disputes with the California judicial apparatus. Musk has decidedly rejected these allegations and titles the ESG ranking system as "fraud".

Musk expressed his concerns on Twitter and criticized the admission of companies such as Exxon Mobil, which are associated with climate change lugings, while Tesla is removed from the ESG index. Analysts indicate the lack of a low-carbon strategy and a clear code of conduct at Tesla. In the meantime, Tesla's euro course has fallen by around 33 % since the beginning of the year, which means that the exclusion from the ESG index could have negative effects on the market value.

discussion about sustainability and ESG

Despite the reviews and controversy, there are also voices that say that Tesla actually fulfills the principles of ESG. John Streur from Morgan Stanley argues that Tesla should still be viewed as a sustainable company. Nevertheless, the debate about the effectiveness of ESG ratings remains. Critics believe that these reviews are often subjective and that the actual social and ecological work of a company does not adequately reflect.

to clarify: ESG refers to environmental, social and governance aspects, according to which companies are evaluated and classified in industry comparisons. The exclusion of Tesla from the ESG index reflects the challenges with which companies like Tesla are confronted in order to remain relevant to the capital market. While some analysts and investors continue to support the company, the question of the actual sustainability and the production conditions of Tesla remains in the foreground of the discussion.

For more details on Teslas ESG environment and the situation in the electric vehicle industry, reference can be made to the following articles: FAZ reports that ... , Sigma Earth explains the backgrounds ... , Growney discusses the dispute at ESG criteria ... .