Lehigh County Pension Fund Halts New Tesla Investments

Published 3 hours agoTSLA

Lehigh County Pension Fund Halts New Tesla Investments

Lehigh County's pension fund has decided to suspend new investments in Tesla stock, citing concerns over the company's recent financial performance and CEO Elon Musk's political activities. The decision reflects apprehensions about both the financial metrics of Tesla and the impact of Musk's political engagements on the brand's image.

Tesla's financials show troubling signs: the company reported a 71% decline in net income year-over-year, bringing it down to $409 million. Additionally, automotive revenue saw a 20% slump to $13.9 billion, while the operating margin decreased to 2.1% from 5.5% compared to the previous year. These figures, coupled with a price-to-earnings ratio of about 154.13—far surpassing the industry average—raise concerns about the company's valuation.

The decision by the pension fund's board to halt further investments was made through a 4-2 vote, as noted by Pensions & Investments. They also asked their investment consultant to review the fund's exposure to Tesla, focusing on the financial, governance, and reputational risks involved. This stance joins a broader trend where institutional investors are reconsidering their positions in Tesla amid financial instability and brand concerns related to its leadership.

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Lehigh County Pension Fund Halts New Tesla Investments

Lehigh County Pension Fund Halts New Tesla Investments

3 hours agoTSLA

Lehigh County's pension fund has decided to suspend new investments in Tesla stock, citing concerns over the company's recent financial performance and CEO Elon Musk's political activities. The decision reflects apprehensions about both the financial metrics of Tesla and the impact of Musk's political engagements on the brand's image. Tesla's financials show troubling signs: the company reported a 71% decline in net income year-over-year, bringing it down to $409 million. Additionally, automotive revenue saw a 20% slump to $13.9 billion, while the operating margin decreased to 2.1% from 5.5% compared to the previous year. These figures, coupled with a price-to-earnings ratio of about 154.13—far surpassing the industry average—raise concerns about the company's valuation. The decision by the pension fund's board to halt further investments was made through a 4-2 vote, as noted by Pensions & Investments. They also asked their investment consultant to review the fund's exposure to Tesla, focusing on the financial, governance, and reputational risks involved. This stance joins a broader trend where institutional investors are reconsidering their positions in Tesla amid financial instability and brand concerns related to its leadership.