The City of Davis, California, is set to deliberate on a resolution that could prohibit the city from engaging with companies controlled by Elon Musk, including major entities like Tesla and SpaceX.
City Council to Vote on Engagement Ban
A draft resolution, titled “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies,” outlines the city’s potential move to sever ties with Musk-affiliated businesses. The proposal stems from allegations that Musk “has engaged in business practices that are alleged to include violations of labor laws, environmental regulations, workplace safety standards, and regulatory noncompliance.”
Allegations Against Musk-Controlled Companies
The resolution further claims that Musk “has used his influence and corporate platforms to promote political ideologies and activities that threaten democratic norms and institutions, including campaign finance activities that raise ethical and legal concerns.”
Potential Impact of the Resolution
If adopted, the resolution would prevent the City of Davis from entering into new contracts or purchasing agreements with any company owned or controlled by Elon Musk. It also specifies that the city would not consider utilizing Tesla Robotaxis.
A staff report indicates that the proposal would have “no immediate budgetary impact.” However, the potential impact on residents is noted, particularly concerning the Tesla Supercharger Network, which is accessible to all electric vehicle manufacturers and is known for its reliability and widespread availability.
Divestment Push to CalPERS
The resolution also includes a measure to encourage the California Public Employees Retirement System (CalPERS) to divest its stock holdings in Musk-controlled companies. While CalPERS previously voted against Musk’s compensation package, the report suggests the firm continues to profit from Tesla’s market performance.
Precedent in Other Cities
This initiative follows similar considerations in other municipalities. For instance, the City of Baltimore reportedly chose to “go in another direction” after initially awarding Tesla a $5 million contract for a fleet of electric vehicles for city employees, citing concerns related to Musk’s political involvement.
The City Council meeting to discuss this proposal was scheduled for the evening of its publication. The report on the matter was initially sourced from the Davis Vanguard.