Insights
Tesla's tanking, is Pathfinder invested?

We’ve had members and potential members all asking us the same thing lately: are you invested in Tesla?

Short answer: not anymore.

The reason, as an ethical investor we were 'in' Tesla - is their leadership around decarbonisation. Tesla hasn't just created momentum behind cars ditching combustion engines, their work has impacted all forms of transport and electrification. These carbon emission reduction benefits however are contrasted by social and environmental costs and challenges.

Our investment process involves ongoing reviews of a range of ethical, environmental, social, governance and financial matters when considering whether to stay invested or to divest a company. We always keep in mind our dual objectives of positive change and financial rewards. On an ongoing basis we consider a wide range of inputs including from our experienced internal teams, from our specialist global research partners and from our investors.

Tesla is an example of a company that has, until very recently, clearly supported our dual objectives. Its visionary leadership has proven the technology, consumer demand and commercial feasibility of switching to electric. This appealed to Pathfinder as the investment supported the transition to a low-carbon world while at the same time providing financial rewards for stakeholders as the value of the company rose to an all-time high of USD $1.5 trillion in December 2024.

The world of investment is constantly changing however as new information comes to hand and it is our job to evaluate and make decisions about whether this impacts our core investment thesis. Tesla is a holding we have always kept a close eye on; it was first added to the Companies of Concern register in April 2022 due to concerns over labour rights.

We updated the listing in November 2024 to include additional perceived risks surrounding governance and in 2025 we included additional concerns over Musk’s management and controversial behaviours. As recorded on the Register, none of these concerns breached an exclusion in our policy.

However, we began to exit the stock in mid-January due to these concerns coupled with additional valuation concerns. We completely divested this stock from all our funds as at 18th March 2025. Subsequently the Ethics and Investment Committee (EIC) met to discuss the company and determined that after due consideration of all factors we will not reinvest in Tesla unless there is a material change in the current situation. Our experience tells us that circumstances may change in the future and the EIC meets regularly to discuss and agree on appropriate limitations to our investable universe.

Learn more about our investments on our Impact Page here and check out our Holdings anytime for a thorough list of what your KiwiSaver is invested in.

image credit: Christophe Gateu/dpa via AP ("Violent attacks on Tesla dealerships spike as Musk takes prominent role in Trump White House")