Image: Tesla
The Davis City Council in California will decide Tuesday whether to officially end the city’s engagement with all companies owned or controlled by Elon Musk. A proposed resolution would stop Davis from signing new contracts with Musk-led firms and push the California Public Employees’ Retirement System to divest from those businesses.
The move follows direct pressure from local residents. According to a city staff report, “The City Council has been approached by members of the public to adopt a resolution to divest from companies owned and/or controlled by Elon Musk.”
The council is essentially responding to a campaign called Divest Musk Yolo, which has gathered over 1,500 signatures. These residents argue that the city’s money should reflect its “core values,” and they view Musk’s business practices as a direct conflict.
The draft resolution targets a wide range of brands, including Tesla, SpaceX, Starlink, and xAI. City officials expressed concerns over corporate conduct, alleging Musk “has engaged in business practices that are alleged to include violations of labor laws, environmental regulations, workplace safety standards, and regulatory noncompliance.”
Beyond business operations, the document suggests a clash of values. It states that “Elon Musk has used his influence and corporate platforms to promote political ideologies and activities that threaten democratic norms and institutions.” The resolution concludes that the “use of products of Musk-controlled companies does not align with the values of the City of Davis.”
If approved, the city would be barred from new contracts and must “terminate such agreements where feasible and legally permissible” for current deals, as per Vanguard News Group. City Manager Daryel Dunston noted there is no “immediate fiscal impact” because Davis has no current investments in these firms, though future financial impacts remain unpredictable.
