As the price of Tesla shares plummet, a group of Democratic New York state senators are urging the state’s comptroller to divest the state pension fund’s position in the Elon Musk–run automaker.
The senators—a group of 23 Democratic representatives led by Senator Patricia Fahy (D—Albany)—sent a letter to the New York State Comptroller, Thomas Napoli, on Tuesday afternoon, asserting that Tesla’s volatile stock performance may pose an “increasingly perilous and financially unsustainable risk” to the pension fund, particularly if Elon Musk remains the CEO..
“Musk’s actions leading President Donald Trump’s Department of Government Efficiency (DOGE) have led to a deterioration of the company’s reputation among its most loyal customers,” the letter stated.
Tesla’s shares have nose-dived this week, with shares falling by 15% on Monday—its worst one-day performance since Sept. 2020—as Musk’s absence from the business and his controversial work in the Trump Administration increasingly draw the ire of investors and customers.
Analysts have blamed Tesla’s stock performance—down nearly 48% since Trump’s inauguration—on disappointing sales figures in Europe and China, as well as ongoing protests and vandalism at Tesla showrooms, manufacturing facilities, and charging stations throughout the U.S. Musk’s businesses have faced backlash due to his role as a senior advisor in the Trump administration and his involvement in mass layoffs and budget cuts at various federal agencies.
The New York State Common Retirement Fund owned approximately 3.5 million shares of the electric-car maker as of December, according to S&P Market Intelligence—a stake that would be worth $810.7 million at Tuesday’s market close. The state senators emphasized in their letter that Tesla’s recent financial performance was “more than just a temporary slump” and could ultimately lead to meaningful declines in the value of the pension fund’s portfolio, in which Tesla is among the largest investments.
“Due to the significant risk posed to the pension fund, we write to request that you begin the process of divesting Tesla shares directly owned by the state pension fund,” the letter reads.
In a statement to Fortune, a New York Comptroller spokesperson said that Comptroller DiNapoli “appreciates Senator Fahy’s concerns and her highlighting of his ongoing efforts to improve Tesla’s corporate governance.”
“As a long-term investor, the Fund remains committed to monitoring risk to our investments and engaging portfolio companies, including Tesla, to preserve and enhance the long-term value of our investments on behalf of our members,” he said.
The New York State Common Retirement Fund is known for being one of Tesla’s activist shareholders, having previously filed a shareholder proposal requesting the company disclose its costs settling sexual harassment and racial bias complaints, calling on Tesla to disclose political spending, and voting against Musk’s controversial compensation package.
While Tesla has suffered steep declines since the Trump inauguration, the price of the automaker’s shares is still approximately 25% higher than it was this time last year.
