Tesla is under pressure in Canada – this time not because of vehicles or technology, but because of politics. The Canadian union CAPE, which represents over 27,000 federal employees, is demanding an immediate withdrawal of public pension funds from Tesla stocks. The accusation: CEO Elon Musk endangers the foundations of public services through his political activities in the USA – even beyond national borders.
Why CAPE is mobilizing against Tesla
The criticism is particularly directed at Elon Musk's role in the US Department of Government Efficiency (DOGE) – a political body that, according to CAPE, aims at massive cuts in public service. Musk has played a significant role there in dismantling essential programs and jobs in the US civil service.
For CAPE, this is not just an American problem: The union warns against an adoption of this model in Canada – with potentially devastating consequences for public services like unemployment insurance or healthcare.
Tesla investments from public pension funds?
The focus is on the Public Sector Pension Investment Board (PSPIB) – one of the largest Canadian pension funds. As of December 31, 2024, it held around 690,000 Tesla shares valued at 278 million CAD.
But since then, the stock price has lost more than 36%, partly due to global trade conflicts and Musk's political proximity to the Trump administration. For CAPE, this is a double reason to act:
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Economic risk due to falling prices
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Ethical unacceptability, as the money of public employees supports a company with an “anti-state attitude”
“Profit over public services” – CAPE does not want to accept this
CAPE President Nathan Prier makes it clear:
“It is concerning that pension funds of Canadian officials are financing companies whose owners publicly oppose state programs and employees.”
In addition to divestment, the union demands:
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Stronger investments in public core programs
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Less dependence on expensive external consultants
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Conversion of vacant office spaces into residential areas through more flexible home office models
The message: Tesla benefits from political structures that systematically weaken the state – and that is incompatible with the core values of the public service.
What does this mean for Tesla?
If the demand from CAPE is implemented, it would be not only a financial signal, but also a strong political affront against Elon Musk. In times of increasing criticism of the economic influence of large tech companies, the topic of "Corporate Responsibility" is also becoming more relevant for investors.
Although the Canadian investment is small compared to Tesla's total value, the symbolic pressure could inspire imitators in other countries – especially in Europe, where similar ethical standards apply to pension funds.
Conclusion
The conflict between Tesla and the Canadian union CAPE shows how closely intertwined economy, politics, and social responsibility have become. For CAPE, it is clear: Those who undermine public services should not be supported with public funds. Whether the PSPIB will comply with the demand remains open – the political pressure is growing.
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