Tesla stock is delisted from the S&P 500 ESG index

Tesla has dropped out of the S&P 500 ESG index for lack of a detailed low-carbon strategy, according to S&P Dow Jones Indices. The decision should surprise investors and has the potential to have a modest impact on the company’s stock.

“Some of the factors contributing to its 2021 ESG score were a decline in criteria level scores related to Tesla’s low carbon strategy and codes of business conduct,” wrote Maggie Dorn, senior director and head of ESG indices for North America at S&P Dow Jones Indices.

The delisting also came after S&P Dow Jones Indices identified accusations of racial discrimination and poor working conditions at Tesla’s Fremont plant.

Also weighed in was the company’s handling of the investigation by regulators in the US following multiple deaths and accidents involving the automaker’s self-driving vehicles.