Tesla's Labor Troubles: Did They Miss My Ctrl+Alt+Del Advice?

Oh No Not Tesla!

Well folks it seems even the shiniest electric cars can hit a pothole. News just in: Swedish pension fund AP7 has given Tesla the boot selling off all their shares. Apparently it's all down to some 'verified violations of labor rights' in the US. And here I was thinking Elon was just busy launching rockets and renaming social media platforms. Maybe he needed a little 'Where do you want to go today?' pep talk.

Dialogue? More Like a Monologue!

AP7 claims they've been trying to have a chat with Tesla for years even teaming up with other investors to propose shareholder proposals. But alas no dice. Tesla hasn't taken 'sufficient measures' to address these issues. It sounds like they needed a good dose of my favorite leadership advice: 'As we look ahead into the next century leaders will be those who empower others.' Looks like someone forgot to install that update.

A Billion Here A Billion There...

Now we're talking serious money here. AP7's stake in Tesla was worth a cool 13 billion crowns – that's about $1.36 billion! Ouch. It represented about 1% of the AP7 Equity Fund so it's not quite a fatal blow but definitely a stinging nettle. Makes you wonder if Elon wishes he'd invested in a better HR department instead. After all 'Your most unhappy customers are your greatest source of learning.'

The Fine Print: It's All About the Assets

Just for context AP7's total assets are sitting pretty at 1,181 billion crowns. So while losing the Tesla shares isn't going to bankrupt them it's a pretty loud statement. It’s almost like saying ‘Hey even if you're building the future you still need to treat your people right.’ And you know what I always say 'Success is a lousy teacher. It seduces smart people into thinking they can’t lose.'

Lessons From the Electric Road

This whole situation reminds me that even the most innovative companies can stumble. It's a good reminder that doing the right thing by your employees is just as important as having a groundbreaking product. Maybe Elon should take a break from Mars and focus on Earth for a bit. Or as I like to put it 'The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.'

A Wake Up Call?

Will this move by AP7 make a difference? Only time will tell. But it certainly sends a message: Corporate social responsibility isn't just a buzzword. It affects the bottom line. Let's hope Tesla takes note and plugs in a bit more empathy. As I've always believed 'We all need people who will give us feedback. That’s how we improve.'