Electric car company Tesla, owned by billionaire new Twitter buyer Elon Muskdrops out of the S&P 500 ESG index due to a low carbon strategy that has not been detailed enough.
“Some of the factors that contributed to your score ESG 2021 were a decline in criteria level scores related to Tesla’s low carbon strategy and codes of business conduct,” wrote Margaret Dorn, head of ESG indices at S&P Dow Jones Indexes North America.
Other factors that affected the decision were the way in which the company handled investigations into cases of accidents and deaths involving Tesla’s autopilot mode. Racial discrimination and poor working conditions were also accusations that the company has suffered in recent times.
After the incident, Elon Musk claimed that the ESG index is a hoax: “Exxon (oil) is placed in the top ten in the world in ESG by the S&P 500, while Tesla is not part of the list! ESG is a scam. It has been used as a weapon by false social justice warriors.”
Despite the repercussion of the events, experts from The New York Times say that the change will not have a negative impact on shares for Tesla. Musk’s company had posted net income of $3.32 billion in the first quarter.
Despite Covid-19 having paralyzed the operation of the Tesla factory in China for a while, the company achieved one of the best results in its history, especially due to the increase in public interest in electric cars.
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