CalSTRS meeting draws broad public pressure to divest from Tesla, defense contractors and Israeli bonds

Public commenters at the California State Teachers’ Retirement System meeting pressed trustees to reconsider holdings in Tesla and several defense contractors and to stop buying Israeli government bonds, framing the requests as both financial and moral imperatives.

Tom Patterson, a physician and investment advisor, told the committee he believes Tesla’s core business is weakening and urged immediate action: “Sell Tesla,” he said, citing declining revenue and compressed margins. Several other members who spoke — including Ruth Rudetsky, Susan McCarthy and Edward Hasbrook by phone — repeated financial concerns about Tesla and questioned whether CalSTRS had conducted individualized assessments of the company’s valuation and risk.

Speakers also raised allegations about companies and private‑equity firms. Jennifer O’Dell of the Laborers’ International Union urged trustees to adopt private‑equity labor standards after describing subcontracting practices she said undercut wages. Courtney Alexander of the United Food and Commercial Workers said labor risks at Apollo‑owned portfolio companies threaten investment value and urged CalSTRS to avoid new commitments until those concerns are addressed. “We urge you not to make new commitments to Apollo funds until these risks are resolved,” Alexander said.

Several speakers framed divestment as a human‑rights issue. Candice Youngblood and other members of CalSTRS Divest asked trustees to direct staff to begin divestment from entities they tied to violence in Gaza; attendees cited a range of casualty and displacement figures and named companies including Palantir, Lockheed Martin, Elbit Systems and Caterpillar. Student and teacher speakers warned that continued investment choices could drive young educators away from the profession.

Alyssa Giacchino of the Private Equity Stakeholder Project highlighted portfolio composition, saying CalSTRS currently holds a larger share of private markets than many peers and urging workforce‑focused investment principles for private equity commitments. “CalSTRS is heavily invested in private markets compared with peer funds,” Giacchino said, urging adoption of labor and stewardship standards.

Trustees did not take action during public comment; the chair closed the speaking period after the phone queue and the meeting proceeded to a short break before the chief investment officer’s report. Public commenters’ statements were recorded and will be part of the meeting record that staff and trustees review as they continue deliberations.