Recently, one of Europe's largest pension funds, ABP, revealed that it divested from its entire stake in Tesla amounting to 571 million euros in the third quarter of last yearThis decision was influenced, in part, by disagreements regarding Elon Musk's pay packageIn June of the previous year, ABP had voted against Musk's compensation proposal, which was valued at over $50 billion, labeling it as "controversial and excessively high."

ABP is one of the largest pension funds globally, managing a staggering 540 billion euros (over 40 trillion yuan). After ABP's sale, Tesla's stock surged, peaking at $488.54 per share, which is double the average sale price ABP received

Nonetheless, ABP has stated that it does not regret the timing of its Tesla stock sale.

In recent trading days, Tesla’s stock has experienced some corrections, closing at $394.74 per share last Friday, with a total market valuation standing at $1,267.1 billionData released in early January indicated that Tesla's car deliveries for 2024 were projected to be slightly less than those in 2023, marking the first annual decline in deliveries in over a decade.

The Giant Liquidates Tesla

On January 13, it was reported that ABP sold off its entire stake in Tesla worth 571 million euros (approximately $585 million) in the third quarter of last year, again citing disagreements with Musk's compensation package.

A spokesperson for ABP mentioned on January 12 that they have "concerns" regarding Musk’s compensation package

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Additionally, the fund considered investment costs, returns, and responsible investment criteria in its divestment decision.

In June of last year, ABP had already voted against Musk’s compensation plan, branding it as "contested and excessive." Nevertheless, at the time, the proposal still received approval from Tesla's shareholders.

ABP commented on their decision to liquidate Tesla’s shares, stating that despite the shares increasing significantly since their sale in late September of last year, they do not have any regretsThey reaffirmed their position as long-term investorsABP also clarified that the stock sale was unrelated to Musk's involvement in U.S

politics.

Further complicating Musk’s compensation saga, last month, a Delaware judge rejected Musk’s unprecedented pay plan once againOn December 2, 2024, Judge Kathryn StJohn McCormick upheld a prior ruling that found the Tesla board had been unduly influenced by Musk when they approved his 2018 pay scheme, reiterating her rejection of the proposalThis pay package was initially valued at $2.6 billion but had skyrocketed to $56 billion at the time of the judge's annulment.

McCormick’s ruling dismantles what had been the highest executive compensation plan in corporate history; if appeals do not succeed, it may drastically cut Musk’s wealth and impact the future of his companies

Musk is reportedly considering appealing the judge's decision to the Delaware Supreme Court.

After McCormick ruled to annul the pay plan last January, Musk criticized the courts on his platform X, stating, "Never register your company in Delaware." Subsequently, Tesla held a shareholder vote to change its registration to Texas, officially completing the relocation in June of last year.

Decline in Last Year’s Deliveries

On January 2, Tesla announced that it delivered approximately 1.79 million vehicles globally in 2024, a decline of 1.1% compared to 2023. This marks the first annual decrease in sales for Tesla since 2015 and fell short of analysts' projections of 1.8 million deliveries.

However, Tesla’s performance in the Chinese market remains robust

According to estimates by automotive data and media, Tesla's sales in China reached 83,000 units in December, a month-on-month increase of 12.8%, with annual sales surpassing 657,000 units, representing an 8.8% year-on-year growth, setting a record in the processTesla continues to be the top-selling electric vehicle manufacturer globally, although its lead is being increasingly challenged by BYD.

Last week, Tesla unveiled the highly anticipated updated Model Y in China, which comes in two configurations priced at 263,500 yuan and 303,500 yuanThe original Model Y continues to offer a discount of 10,000 yuan and a five-year interest-free policy, bringing the total price down to 239,900 yuan, making it 23,600 yuan cheaper than the updated Model Y, which is expected to start deliveries by March 2025. Tesla’s Vice President Tao Lin stated, "The only car that can surpass the Model Y is the updated Model Y."

According to China Merchants Securities, 2024 will represent a trough in Tesla’s product cycle, with a year-on-year sales decline; however, the revival signaled by the rollout of the updated Model Y and a cheaper vehicle in 2025 marks a return to strengthened sales growth, particularly with the introduction of budget models opening up development space in the latter half of 2025 and 2026.

Yet, with increased vehicle sales, Tesla has also faced a surge in recall incidents globally

On January 10, Tesla announced a recall of approximately 239,000 electric vehicles in the U.S., citing issues with some rearview cameras potentially failing.

According to Tesla, issues with rearview cameras can diminish the driver’s visibility, raising the risk of accidentsThe recall applies to Model 3 and Model S vehicles from the 2024-2025 model years, and Model X and Model Y SUVs from the 2023-2025 model years.

In mid-December, Tesla recalled nearly 700,000 vehicles due to issues with tire pressure monitoring system warning lightsAccording to a letter from the U.SNational Highway Traffic Safety Administration, this recall involved certain models of the electric pickup (Cybertruck) from 2024, as well as 2017-2025 Model 3 and 2020-2025 Model Y vehicles

Tesla has indicated that free software updates have been provided to resolve the identified issues.

According to tracking data from the National Highway Traffic Safety Administration, Tesla announced 16 recalls in 2024, affecting over 5 million vehicles in the U.S.

Musk Stirs European Politics

Recently, Elon Musk's vocal presence on European political matters has drawn significant attention

Reports from January 10 suggest that the billionaire has been venturing into German politics, attempting to break the political blockade that has historically prevented the far-right party, Alternative for Germany, from securing a governance role.

According to reports, Musk hosted a live-streamed talk on January 9 featuring the AfD's chancellor candidate, Weidel

This action was met with warnings from German politicians ahead of the event, threatening legal action due to Musk lending a degree of publicity and legitimacy to a party that has long been marginalized in German public lifeDuring the discussion, he was explicit in voicing support for the party, suggesting that voting for the AfD "is a smart move."

The reports also highlighted Musk’s significant media presence, claiming that he now possesses a platform increasingly utilized by right-wing individualsHe has formed close ties with recently elected U.Sofficials and has started promoting right-wing candidates and parties across Europe.

The European Union has responded to Musk's considerable influence by launching an investigation into his potential interference in European politics

Notably, German leaders have oscillated between criticism and deliberate indifference concerning Musk's political engagementUp to this point, German voters seem unaffected, as a recent poll indicated that three-quarters of respondents found Musk's commentary on German politics inappropriate, yet many believe such involvement may benefit the AfD’s campaign.

Increasingly concerned about Musk’s potential impact on Britain, the U.Kgovernment’s counter-extremism division has begun monitoring his social media posts.

The U.KHome Office confirmed that additional surveillance has been implemented to assess social media content and influence, particularly regarding "high-profile accounts" including Musk's.

Recently, Musk has shared numerous posts discussing U.K