March 11, 2025

To:
Investment Team, North Carolina State Pension Fund,
Kevin SigRist, Chief Investment Officer
[email protected]
919-814-4331

Bradford Briner, NC State Treasurer
[email protected]
919-814-4000

I am writing to you today as a public school teacher in North Carolina, a beneficiary of the state pension fund, and a proud North Carolina resident. I am respectfully urging you to consider divesting from Tesla (TSLA) within our pension fund's portfolio.

My concern stems from factors that have emerged since the state of North Carolina’s original investment in the company and subsequent increases in our position. Each factor, I believe, warrants serious consideration from a fiduciary and ethical lens. These factors include EV market dynamics, politicization of the brand, and upcoming earnings expectations.

There are increasing concerns about the long-term viability of Tesla's business model and its competitive position in the rapidly evolving electric vehicle market. The bull case for TSLA hinges on outlandish promises that Elon Musk uses frequently to inflate valuations. Other EV makers are luring Tesla customers with attractive trade in offers (Ford, Rivian, Polestar). Tesla is having a difficult time selling cars due to the protests that are growing steadily. They are beginning to offer extended 0% financing because sales are steadily decreasing. If you factor in the disappearance of the EV Tax Credit and the trade environment being deeply affected by tariffs you can see that the market is much less friendly to Tesla than it was.

Tesla’s CEO Elon Musk, is making political moves that are deeply unpopular with Tesla’s core customer demographic. Sales are slumping worldwide, in many countries upwards of 50% year over year. Our own domestic EV market numbers are likely going to be well below analysts expectations in Q1 2025. Brad Briner’s own campaign slogan was “Professional Experience not Partisan Politics,” and Musk has turned the brand into a deeply polarizing political symbol that does not favor increasing car sale unit numbers.

This polarization has already had big impacts on the stock. The Dutch Pension fund has divested earlier this year to the tune of $585 million. Funds are recognizing the extraordinary risk associated with a company that is overvalued and turning into a toxic brand that attracts vandalism and social stigma. It’s likely that insurance underwriting for Tesla’s will become more difficult and insurance costs will increase further deterring buying.

Tesla's stock has exhibited significant volatility. This volatility poses a risk to the stability and security of our pension fund, which is crucial for the retirement of public servants like myself. Since January 1, 2025 our 1,292,628 shares have lost $127,659,941 in value (as of the drafting of this letter on March 11th). Sales are a trailing indicator performance, and we will likely see a disappointing earnings report that reflects all of the factors I’ve mentioned above on Apr 22, 2025.

I understand that investment decisions are complex and involve many considerations. However, I believe that the risks associated with Tesla, both financial and ethical, outweigh the potential benefits. As a teacher, my own retirement security is in your hands. I believe that divestment from TSLA would be a prudent and responsible step towards ensuring that security.

I urge you to take action to divest from Tesla. I believe it’s key that we divest before the next earnings report in April.

Thank you for your time and consideration.

Sincerely,

Teacher's Name
Teacher's School
Teacher's Contact Information