NYC Tesla Investments: Divest Now?
NYC Council Member Justin Brannan demands the city divest its $1.2 billion from Tesla, citing volatile stock performance and ethical concerns surrounding Elon Musk’s leadership. Explore the risks facing New York City’s Tesla investments, as Brannan advocates for investments aligning with the city’s values. News Directory 3 reports on his criticism of Tesla’s recent market performance,including a meaningful drop in profits,and highlights the council member’s call for strategic financial shifts. Understand why Brannan believes current investment practices are unsound. Discover the steps being taken to reassess the city’s financial commitments and determine the future of its stake in the electric car market. Discover what’s next …
NYC Council Member Justin Brannan Urges City to Divest from Tesla
Updated June 15, 2024
New York City Council member Justin Brannan, who is running for city comptroller, is advocating for the city to withdraw its $1.2 billion investment in Tesla.Brannan argues that the electric car company’s stock is unstable and that CEO Elon Musk’s actions pose a risk to the city’s pension funds.
Brannan, a former punk musician, said he brings the same ethos of fighting corruption and standing up for beliefs to his work in the City Council. He believes the comptroller’s office, which manages nearly $300 billion in public pension assets, should invest in companies that reflect the city’s values.
He pointed to Tesla’s declining stock value, which is down more than 14% this year, and a 71% drop in profits year-over-year. He also raised concerns about Musk’s behavior, citing reports of ketamine use and political extremism.
“Tesla’s stock is a house of cards, held together by hype, volatility, and the whims of a man reportedly high on ketamine and spiraling into political extremism,” Brannan said.
Brannan also criticized Musk for cutting funds from New York and threatening to gut programs that retirees rely on, such as Medicaid and Social security.
He said the city should instead invest in companies that align with its values, as it has done in the past by divesting from fossil fuels, gun manufacturers, and companies doing business in apartheid South Africa.
“we invested in Tesla years ago as we bought the sales pitch: innovation, climate progress, the future. But look around. This isn’t the future we want, and we have the power to say no,” Brannan said.
What’s next
If elected comptroller, Brannan said he would prioritize making smart, steady investments that deliver stable returns for the city and its pensioners, and would encourage other cities to follow New York’s led in divesting from companies that do not align with their values.