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Tesla is REMOVED from S&P 500 ESG index over Autopilot crashes and racial discrimination claims

BREAKING NEWS: Tesla is REMOVED from the S&P 500 ESG Index after it was affected by claims of racial discrimination in factories and its handling of investigations into Autopilot accidents

  • The electric car maker was removed from an index that measures ‘sustainability’
  • Dow Jones cited several issues that lowered its score, including concerns about its lack of a low-carbon strategy and codes of business conduct.
  • He also cited allegations of racial profiling and deaths related to Autopilot.
  • Autonomous driving technology has been linked to at least 11 deaths since 2016
  • Last year, a jury awarded a former Tesla contractor $137 million for alleged racial harassment
  • Tesla remains in the regular S&P 500 which measures market capitalization

Tesla has been removed from a widely followed sustainability index over concerns about its lack of a low-carbon strategy, claims of racial discrimination and deaths related to its Autopilot technology.

S&P Dow Jones Indices removed the electric carmaker from the S&P 500 ESG index on May 2, the company announced in a blog post Wednesday.

The index measures the ‘performance of securities that meet sustainability criteria’.

‘ESG’ stands for Environmental, Social and Governance. The criteria are used by ‘socially conscious’ investors when deciding where to put their money, according to Investopedia.

Tesla remains in the regular S&P 500 index, which measures the largest US companies by market capitalization.

The index provider cited several issues at Tesla that significantly lowered its ESG score, including claims of racial discrimination, poor working conditions, and its handling of a government investigation after accidents involving its self-driving cars.

Autopilot technology has been linked to at least 11 deaths since 2016.

Shares of the company have fallen 27 percent in the past month after founder and CEO Elon Musk announced plans to buy Twitter.

S&P Dow Jones Indices removed Tesla from the S&P 500 ESG Index on May 2 after it failed to meet various sustainability and social responsibility criteria.

S&P Dow Jones Indices removed Tesla from the S&P 500 ESG Index on May 2 after it failed to meet various sustainability and social responsibility criteria.

The delisting is another blow to Tesla as its stock takes a hit amid its mercurial founder’s bid to buy Twitter and undo its content moderation apparatus.

The move is “related to Tesla’s (lack of) low-carbon strategy and codes of business conduct,” the index said.

It describes business codes of conduct as ‘a company’s implementation, transparent reporting of violations and the occurrence of cases of corruption and bribery and anti-competitive practices’.

S&P Dow Jones also says the company is at risk of controversy after an analysis considered its “involvement in a controversial incident, identified two separate events centered on claims of racial discrimination and poor working conditions at Tesla’s Fremont factory, as well as like his handling of the NHTSA investigation after multiple deaths and injuries were linked to his autopilot vehicles.

“Both events had a negative impact on the company’s S&P DJI ESG score at the criteria level and, subsequently, its overall score.

“While Tesla may be playing its part in phasing out fuel-powered cars, it has fallen behind its peers when examined through a broader ESG lens.”

But the index provider says the company could still rejoin the sustainability index in the future if it requalifies.

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