ESG index removes Tesla, Musk calls it a scam

removed from the index.

Musk angrily accused him of creating a "scam."

ESG index excludes Tesla, Musk calls it a scam.

ESG index excludes Tesla, Musk calls it a scam 1 On Wednesday (May 18) local time, S&P Dow Jones Indices announced its annual annual index adjustment on its official website.

Among the 308 constituent stocks of the S&P 500 ESG Index, Apple, Microsoft, Google, Amazon, Nvidia, UnitedHealth Group, Procter & Gamble, Exxon Mobil, JPMorgan Chase, etc. were selected again.

But Tesla, Berkshire Hathaway, Johnson & Johnson, Meta and other companies were excluded.

Margaret Dorn, senior director of North America and head of ESG indexes at S&P Dow Jones Indices, explained in a blog post on the official website on the 17th that Tesla’s scores on environmental, social and governance standards have remained “fairly stable” over the past year, but with

It slipped in the rankings compared with improving global peers.

Dorn wrote that exposure of poor working conditions and racial discrimination at Tesla's Fremont factory, its handling of the investigation of autopilot-related injuries and deaths, and the lack of a low-carbon strategy and business code of conduct are all detrimental to it.

While Tesla has played a role in phasing out fuel-powered vehicles, Dorn noted that it has lagged behind peers from a broader ESG perspective.

Finally, Dorn also "encouraged" the failed companies, "Although Tesla and other companies may not be included in the index this year, they will have the opportunity to be included in the review again in the next few years." Musk responded on Twitter:

After the news that ESG was a scam was announced, Tesla's intraday decline expanded to 5.4%.

Naturally, Musk, the founder and CEO of Tesla, also launched a series of "violent attacks" on S&P Dow Jones Indices on Twitter.

Musk wrote, "ESG is an outrageous scam! Shame on S&P Dow Jones Indices." Musk added, "(U.S. energy giant) ExxonMobil is rated ESG (environmental,

Social and Corporate Governance) top ten, and Tesla is not on the list!” Musk emphasized that although Tesla has done more for the environment than any company, the ESG score actually pays more attention to some other political factors.

Musk said, "The political attacks on me will escalate dramatically in the coming months." Tesla was kicked out of the S&P 500 ESG Index at a sensitive time in Musk's acquisition of Twitter.

Previously, Musk made it clear that he would revoke Twitter’s ban on former U.S. President Donald Trump after the deal was completed.

ESG index excludes Tesla, Musk calls it a scam 2 On Wednesday, local time in the United States, executives of S&P Dow Jones Indices issued a document saying that due to the impact of racial discrimination accusations and frequent crashes related to driver-assisted driving systems,

, the company has removed Tesla from the S&P 500 ESG Index.

In response, Tesla CEO Elon Musk angrily denounced it as a "scam."

The S&P 500 ESG Index uses environmental, social and governance data to rank companies and effectively recommend companies to investors.

Its metrics include hundreds of data points for each company related to the way the business impacts the world and treats stakeholders beyond shareholders, including customers, employees, suppliers, partners and more.

S&P Dow Jones Indices made the decision last month to remove Tesla from the index.

Meanwhile, Apple, Microsoft, Amazon and even oil and gas multinational ExxonMobil are still on the list.

In this regard, Margaret Dorn, head of North America for the S&P 500 ESG Index, issued an explanation on Wednesday.

S&P Dow Jones Indices said that Tesla's factory in Fremont, California, has racial discrimination and poor working conditions.

The accusations prompted a lawsuit from a California agency, which Tesla is contesting.

S&P also said its decision was also influenced by the U.S. National Highway Traffic Safety Administration's (NHTSA) investigation into Tesla, after several people were injured and even died due to its driver assistance system Autopilot.

"While Tesla may have played an active role in replacing gas-powered vehicles, from a broader ESG perspective, it has lagged behind its peers," Dorn said. Tesla stock was included in May 2021

Before being removed from the S&P 500 ESG Index, the stock held the fourth-largest weighting in the index, behind Apple, Microsoft and Amazon.