When public officials steward our tax dollars, they must uphold both financial responsibility and the values of the community they serve. Lehigh County, Pennsylvania, took that obligation seriously when Controller Mark Pinsley moved to block new pension-fund investments in Tesla. His decisive action reminds us that “public pensions are not just private retirements – they are public trusts,” and that “every dollar mismanaged today risks broken promises tomorrow.” Durango, Bayfield, Ignacio and La Plata County – really local governments nationwide – should take note and consider adopting similar ethical investment screens.
Pinsley’s proposal, approved by a 4-2 vote, was grounded first in fiduciary duty. Tesla’s recent financial performance has been troubling: earnings are down 71% year-over-year, auto revenues have fallen by 20% and sales in key markets plunged – 76% in Germany and nearly 50% in China. In this volatile environment, pouring more pension dollars into a single, high-risk stock jeopardizes the retirement security of public employees who maintain our roads, teach our children and protect our community.
Yet Pinsley’s concerns extended beyond the balance sheet. He lamented that Tesla has evolved from a technology leader into a company “driven by ego” rather than product integrity. Elon Musk’s incendiary tweets, political provocations and public stunts have triggered protests at dealerships and walkouts by customers. As Pinsley warned, “silence is no longer neutral. We are shareholders in the future, and that gives us responsibility.” Public pension boards cannot ignore how a CEO’s conduct undermines brand stability and long-term returns.
Tesla’s labor-relations record adds another layer of governance risk. The company’s aggressive anti-union tactics strip workers of collective voice and accountability – two essential checks that promote sustainable corporate behavior. Pinsley explains that a unionized workforce would provide both internal structure and public credibility, deterring imprudent management decisions. By resisting unions, Tesla has removed these guardrails, heightening the risk that pensioners’ funds could support instability.
This debate reflects a broader national conversation about ESG – environmental, social and governance – criteria. Public funds across Europe and the United States are reexamining Tesla investments on similar grounds. In Colorado, we have already committed to divesting from fossil fuels to honor climate goals. Extending that principle to governance and social responsibility is a logical next step. City and county retirement funds and investment policies should include clear criteria flagging companies whose leadership or practices pose reputational or operational threats.
Critics argue that ethical screens might hamper returns, but long-term value stems from stable, well-governed companies. As Pinsley notes, “long-term value isn’t earned through celebrity or chaos, but through companies that treat their workers, customers and shareholders like they matter.” By integrating governance and social responsibility into investment decisions, pension boards can identify resilient companies poised for sustainable growth while avoiding firms whose controversies erode market confidence.
Local governments must embrace this lesson. Our residents prize transparency, equity and responsible governance. We support innovation, but not at the expense of accountability. Local leaders should publicly review existing investments, assess whether any holdings exhibit red flags like those seen at Tesla, and adopt a formal process for ESG evaluation, complete with public reporting and clearly defined screens.
Managing public money is a solemn public trust. As Pinsley cautioned, “we can’t build a just economy while funding its collapse,” and if our dollars underwrite instability, then “silence is complicity.” Local officials should follow his lead: establish ethical investment screens, conduct transparent portfolio reviews and ensure every dollar supports companies that exemplify stability, integrity and respect for workers and customers.
Our community deserves nothing less than diligent, value-driven stewardship of its resources. By embracing ethical investment standards, we can protect our retirees, uphold our shared values and strengthen public confidence in local governance.
Laura MacLaurin is a resident of and trustee for the city of Bayfield.
