By Staff
A group of 23 Democratic state senators have sent a letter asking the New York State Comptroller, Thomas Napoli, to begin divesting shares of Tesla directly owned by the New York State Retirement Fund.
The letter, dated March 11, cited a report by MarketBeat that said Tesla is the seventh largest share of the pension fund’s holdings and noted its volatile stock performance could pose an “increasingly perilous and financially unsustainable risk” to the pension fund, particularly if Elon Musk remains chief executive officer.
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In the letter, the state senators pointed out Tesla’s recent financial performance was “more than just a temporary slump,” noting it could adversely affect the value of the pension fund’s portfolio. It also cited news reports of a significant decrease in the electric-vehicle manufacturer’s sales this year, including New York Times reporting that Tesla’s sales decreased in Germany by 76% in February 2025 compared to a year earlier.
“New York’s pension fund is one of the best-managed in the nation, and we must ensure that it remains financially sound for the more than one million retirees and beneficiaries who depend on it,” said Senator Patricia Fahy (D—Albany), in a statement on her website. “Given Tesla’s ongoing volatility and significant profit decline, we should seriously evaluate the risks of continued investment and its impact on the pension fund’s stability. Beginning to responsibly divest from Tesla is a prudent step to protect the long-term stability of the fund and ensure that we are making responsible financial decisions on behalf of New York’s public employees and retirees and financial future.”
