1. United States
2. N.Y.
3. Letter

New York's state pension fund should divest from Tesla due to the increasingly precarious financial situation caused by Elon Musk's controversial actions as CEO. Tesla's stock has plummeted nearly 50% since the divisive Trump inauguration, reflecting customer backlash over Musk's role in the administration and disappointing sales figures. This extreme volatility poses an unsustainable risk to the pension fund's investments. While Tesla remains a major holding, its performance is more than a temporary slump necessitating divestment to protect the fund's long-term value for members. Continued association with Musk's management increases the peril to New York's investments, warranting the prudent step of divestment.