Back in December, Norway’s $1.5 trillion wealth fund, also known as the Norges Bank Investment Management (NBIM), urged Tesla to sign a collective agreement with trade union IF Metall. The NBIM’s stance in December was seen by Tesla skeptics as a sign that the fund may be stepping back from its support of the electric vehicle maker.
As per a recent report from Bloomberg News, however, the NBIM actually boosted its holdings in Tesla last year. The fund saw Tesla climb to its 11th largest holding by the end of 2023, with its stake rising to 0.98%, or about $7.7 billion. In the year prior, the NBIM held a 0.87% stake in the electric vehicle maker.
Tesla is not the only electric vehicle maker that saw some support from the NBIM. BYD, which dethroned Tesla as the world’s largest electric car company in late 2023, also saw more investment from Norway’s wealth fund. As per Bloomberg, the fund’s stake in BYD reached 0.57% by the end of the year. In the year prior, the NBIM only had a 0.38% stake in BYD.
Established in the 1990s to manage Norway’s oil and gas wealth abroad, the Norges Bank Investment Management largely follows a benchmark index based on a framework from the parliament. Its 2023 results are expected to be released on Tuesday.
It remains to be seen if the NBIM will continue to urge Tesla to secure a collective agreement with IF Metall in Sweden. The fund, if any, has been a strong supporter of Tesla’s potential unionization. This was highlighted by the fact that the NBIM supported a shareholder proposal in 2022 for Tesla that was aimed at introducing a policy to respect employees’ right to organize. The proposal was rejected.
Tesla has been seeing some challenges this 2024. The company narrowly missed earnings estimates last week, and it also stated that its volume growth would be notably lower in 2024 as it focuses on its next-generation vehicle platform. Since the start of the year, Tesla stock has dropped 23%.
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