Davis City Council Considers Resolution to Divest from Elon Musk Companies
The City Council of Davis, California, is set to discuss a resolution that would prohibit any engagement with companies owned or controlled by Elon Musk, such as Tesla and SpaceX.
The proposed resolution aims to “divest from companies owned and/or controlled by Elon Musk” and urges CalPERS, the California Public Employees Retirement System, to divest from any Musk company stocks.
Entitled “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies,” the draft alleges that Musk has been involved in practices that violate labor laws, environmental regulations, workplace safety standards, and regulatory compliance.
Furthermore, it claims that Musk has used his platforms to promote political ideologies that threaten democratic norms and institutions, raising ethical and legal concerns.
If approved, Davis would refrain from entering into new contracts or purchasing agreements with Elon Musk-controlled companies and would not consider utilizing Tesla Robotaxis.
The proposal suggests that there would be no immediate budgetary impact on the city. However, it could potentially affect residents, especially Tesla owners who rely on the Supercharger Network for charging their electric vehicles.
Regarding the call for CalPERS to divest from Musk companies, the firm’s previous stance against Musk’s compensation package may indicate a willingness to make the move. Despite this, CalPERS has continued to benefit from Tesla’s performance on Wall Street.
The City Council will deliberate on the decision to disengage from Musk companies during their upcoming meeting.
Source: Davis Vanguard
Elon Musk’s involvement in politics, particularly during the recent Presidential Election, has stirred controversy. Similar actions have been contemplated by other cities, such as Baltimore, which reconsidered a contract with Tesla for electric vehicles following Musk’s political activities.