Teachers, beneficiaries urge CalSTRS to divest from Tesla and other companies during public comment

Several speakers addressed the Investment Committee during the public-comment period on March 12, 2025, urging the California State Teachers Retirement System to divest holdings in Tesla and other companies they said pose financial and moral risks.

Edward Hasbrook, who identified himself as the spouse of a teacher and a CalSTRS pension beneficiary, urged the fund to sell its Tesla holdings, saying, “Sell Tesla all of it now.” He told trustees he believed divestment was both financially prudent and morally warranted. Retired San Francisco teacher Ruth Rudetsky also called for divestment from Tesla, saying she was “horrified to find out that CalSTRS had more than a billion dollars invested in Tesla,” and argued for prompt action and public communication if staff had already begun selling.

Other speakers echoed calls to divest from Tesla and broader fossil-fuel investments. Jared (last name not specified in the record) criticized Heritage’s anti-union campaign tied to a grocery operator and urged CalSTRS to hold Apollo accountable for workplace and human-rights concerns at portfolio companies. Doneisha Lugo, a community college professor, told the committee she supports divestment from companies that “do not support the values and vision of the California educational system.”

Staff and trustees accepted the public comments into the record but did not propose or take a formal vote on divestment at the meeting. Counsel reminded the committee members that federal preemption and the National Labor Relations Act constrain certain actions and public disclosures when an ongoing labor dispute exists; staff said follow-up and any company-specific engagement would proceed through existing investment and governance processes and, where appropriate, in closed session.

The committee did not announce any immediate changes to investment positions on the record during the meeting.