CalSTRS public commenters urge divestment from Tesla and companies tied to the Israel–Gaza conflict

At a public comment session during the California State Teachers' Retirement System (CalSTRS) Investment Committee meeting, a string of teachers, union organizers, beneficiaries and advocacy groups urged the fund to investigate or divest from Tesla and from companies they said are tied to the Israel–Gaza conflict or to human-rights abuses.

Speakers invoked both fiduciary risk and moral concerns. "Your fiduciary duty is to exercise the prudence that a normal person would exercise," said Edward Hasbrook, who identified himself as the spouse of a retired teacher and a CalSTRS beneficiary from San Francisco, urging the board to direct staff to assess the valuation and risk of Tesla. "If not, please put it on the agenda for your next meeting," he said.

Organizers said they had submitted hundreds of communications before the meeting. A staff read into the record noted that, as of close of business on Sept. 2, CalSTRS had received 88 communications asking it to divest from Tesla and related Elon Musk businesses, five communications about Trump Media and Technology, and 102 form emails urging a review of investments related to the geopolitical conflict in Gaza.

Sarah Holtz, an organizer with the Office and Professional Employees International Union (OPEIU), said CalSTRS is the largest U.S.-based investor in Teleperformance at about $57,000,000 and called for stronger labor standards and a path to unionization in U.S. operations. "We look forward to further engagement with CalSTRS about this issue," she said.

Alyssa Giacchino of the Private Equity Stakeholder Project discussed private markets, noting CalSTRS now commits about 44% of its portfolio to private assets and urging workforce-management principles in private fund investments. "Poor workforce practices can lead to operational disruptions, high turnover, litigation fines and reputational harm that can have material impacts on companies' performance," she said.

Several speakers pressed specifically on Tesla. Thomas Pattison, a CalSTRS beneficiary, delivered a packet of about 1,300 signatures he said were from Yolo County and called for the fund to "defund Tesla," citing litigation risks, reliance on regulatory credits, and executive compensation. Mary Jo Walker, a retired public finance director and CPA, urged the board to sell "its 4,500,000 shares of Tesla, or at a minimum analyze it to determine whether it still meets your investment standards," saying the holding had returned roughly 12% over five years.

Other public commenters, including people identifying as teachers, union members and faith- and civil-rights advocates, urged CalSTRS to divest from companies they named as enabling the conflict in Gaza. Those names included Palantir, Caterpillar, Lockheed Martin and Elbit Systems; callers also cited investments in Israeli banks and bonds. "Remaining silent or invested is not a neutral act," said Fozia Farooq of CAIR California.

The group CalSTRS Divest and other speakers called for direct staff engagement and for CalSTRS to adopt or consider formal divestment steps similar to previous historical divestment campaigns.

CalSTRS Chairperson Keeley responded after public comment: "Our staff will report back to us the nature of the meetings that they've had with the stakeholders," and said the issues are "serious, they're complex." Keeley added that discussion of individual securities or investments will occur in closed session and said the committee would continue to seek legal and consultant guidance. "You should not leave here thinking no one is listening to you," she said.

The committee did not take formal action on any of the divestment requests at the meeting; speakers were told staff would continue discussions and report back to the board and committee in an appropriate forum.