Tesla drops ESG index, Musk says theme ‘is a hoax’

Tesla drops ESG index, Musk says theme ‘is a hoax’

THE Tesla (TSLA34) dropped out of the S&P 500 ESG index, which was “due to a lack of a detailed low-carbon strategy,” according to officials at the S&P Dow Jones Indexes. The decision surprised most investors but is unlikely to have a direct impact on stocks, according to analysts polled by The Wall Street Journal.

“Some of the factors that contributed to your score ESG 2021 was a decline in criteria level scores related to Tesla’s low carbon strategy and codes of business conduct,” wrote Margaret Dorn, senior director and head of ESG indices for North America at S&P Dow Jones Indexes.

“You can’t just take a statement about a company’s mission at face value. You have to look at your practices in all these important dimensions,” he continued.

In addition S&P Dow Jones Indexes cited allegations of racial discrimination and poor working conditions at Tesla’s Fremont plant, serving as a negative point in the matter.

Another factor was the way the company handled the investigation by regulatory authorities in the US after cases of deaths and accidents involving vehicles with autopilot.

Soon after the case, Elon Musk went public to say that ‘ESG is a hoax’.

“THE [petrolífera] Exxon is ranked in the world’s top ten for ESG by the S&P 500, while Tesla is not on the list! ESG is a scam. It has been used as a weapon by false social justice warriors,” said the businessman and Tesla CEO.

Asked about Musk’s criticism, a representative of the index provider said that “the list is not a ranking of the best companies in terms of ESG”.

Currently, Exxon has a weight of 1.443% in the index portfolio while Apple has the highest weight on the list, at 9.657%.

Tesla’s withdrawal is among a series of changes to the S&P 500 ESG since April 22. Among the additions are the twitter (TWTR34).

Tesla (TSLA34): 1Q22 profit reaches $3.32 billion, above expectations

Tesla reported first-quarter net income of $3.32 billion, or $2.86 per share, up from $438 million, or $0.39 per share, in the same period in 2021.

The result surpassed the forecast of US$ 2.26 by analysts consulted by the Wall Street Journal.

the revenue of Elon Musk’s company stood at US$ 18.756 billion in the first quarter of this year, compared to US$ 10.389 billion in the same period last year. Automobile revenue rose 87% year-on-year to $16.861 billion.

The company notes that its weekly production in Shanghai was “strong” in the first quarter, but points out that a jump in Covid-19 cases in the Chinese city led to a temporary shutdown of its factory, as well as parts of its supply chain. . “Although limited production has recently resumed, we continue to monitor the situation closely,” he says.

“This was the best result in the company’s history, surpassing the margin obtained in the last quarter (which stood at 31.3%), even in an environment of global inflation of inputs, the result of both an increase in the average price and a control of costs better than expected”, says Nathan Epstein, partner at Catarina Capital.

The net income recorded by the Tesla came almost 30% above what analysts estimated, at US$ 2.5 billion.

Source: Suno

Related post

The 12 months Elon Musk noticed his fortune shrink by $132 billion

The 12 months Elon Musk noticed his fortune shrink…

Amid the widespread fall in company stocks in the United States, most billionaires watched their fortunes shrink in 2022. But the…
Elon Musk Declared Battle on Apple, However Twitter Income Nonetheless Relies upon Too A lot on Apple

Elon Musk Declared Battle on Apple, However Twitter Income…

Elon Musk used his early days on Twitter to do everything in his power to fend off potential big advertisers. When…
New Bayer director says what it takes to be an ESG skilled

New Bayer director says what it takes to be…

With the advancement of ESG schedulean acronym that defends environmental, social and governance commitments, companies begin to move to establish and…

Leave a Reply

Your email address will not be published. Required fields are marked *