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Wall Street is no stranger to culture wars, dating to William Jennings Bryan and the 19th-century free silver movement. Today’s version: The push by conservative states to make state pension funds stop doing business with money managers who use their power to press companies to cut carbon emissions.

There’s a list of reasons to suspect the pushback won’t much affect the movement toward investing that factors in environmental, social and corporate governance goals alongside shorter-term financial performance.

First, the  blowback to ESG is confined to a few states so far, with Republican politicians in other states raising issues but taking only limited action. Even where states have acted, the steps seem likely to have little impact on investment firms that consider ESG in choosing stocks – which is nearly all major asset managers. And politicians are preparing for an assault on ESG based on antitrust claims – but institutional investors have framed their strategies to steer clear of legal theories Republican state attorneys general are pursuing, legal experts say.

“It’s not only vaporware, it’s ridiculous vaporware,” said David Nadig, an expert on exchange-traded funds and financial futurist at VettaFi, which owns ETFDatabase.com. Vaporware is software-industry slang for products that are announced but never reach store shelves. “They say they’re boycotting companies that are boycotting the energy industry, and then they find out BlackRock manages energy funds.” 

The tussle between conservative states, with officials in Florida and Texas being the most vocal, and Wall Street is specifically about how investors should use their money to take sides in debates over energy policy and climate change. More broadly, it’s another front in America’s culture wars, with politicians positioning themselves as fighting back against what Florida Gov. Ron DeSantis calls “woke” corporations.

“Corporate power has increasingly been utilized to impose an ideological agenda on the American people through the perversion of financial investment priorities under the euphemistic banners of environmental, social, and corporate governance and diversity, inclusion, and equity,” DeSantis said in a July 28 statement announcing that the state would bar its pension funds from considering ESG criteria in making investments.

ESG is a branch of investing based on screening securities based on their issuers’ environmental, social and corporate governance practices. Companies with low carbon emissions, transparent governance and good labor relations, for example, may get high ESG scores from arbiters such as Sustainalytics and Standard & Poor’s. Companies that make tobacco, oil and weapons often do poorly.

Some ESG investments are separated from other stocks, held by mutual funds and exchange traded funds specializing in companies that either have high ESG scores or avoid certain industries, including fossil fuels. A much larger number of funds continue to hold stocks in industries criticized on ESG grounds, while portfolio managers pressure companies to improve governance practices and cut their pollution.

Members of the five-year-old Climate Action 100+ coalition, for example, control more than $68 trillion in assets, most of it held by traditional money managers rather than ESG funds, said Kirsten Snow Spalding, senior director of the Ceres Investor Network and a spokesperson for the Climate Action 100+.

Florida and Texas have taken different approaches, each of which highlights the uphill climb anti-“woke” politicians face in trying to derail ESG investment.

Florida’s Board of Administration adopted what amount to guidelines, without specific enforcement measures, even as DeSantis vowed to introduce follow-up legislation next year. (DeSantis’ office didn’t respond to written questions from CNBC.com). The resolution requires that Florida’s pension funds consider only the likely financial performance of prospective investments, putting no weight on politics.

Texas’ SB-13 bill, adopted last year, is more coercive, or appears to be. Drafted using a model from the conservative American Legislative Exchange Council, the Texas law requires state pension funds to divest from companies that “boycott” energy companies. But, in an important exception, it excludes any requirement to divest most investment funds managed by those companies.

And attorneys general in 19 states signed an Aug. 4 letter to New York-based asset management giant BlackRock, arguing that ESG investing damages energy companies by pushing for lower carbon emissions, raising the question of whether investor pressure violates antitrust laws.

“While couched in language about long-term value, BlackRock’s alignment of engagement priorities with environmental and social goals, such as the UN’s Sustainable Development Goals, suggests at a minimum a mixed motive,” the letter said. “BlackRock’s actions appear to intentionally restrain and harm the competitiveness of the energy markets.” 

The Texas law has gotten off to a rocky start.

In its initial effort to identify companies that boycott energy businesses — a linchpin of Texas’ economy — the Texas State Comptroller’s office only identified one U.S-based firm, New York-based BlackRock, which manages $8.5 trillion in assets, and nine foreign firms including UBS and Credit Suisse. 

Spokespeople for Texas’ Attorney General Ken Paxton and Comptroller of Public Accounts Glenn Hegar did not respond to requests for comment. Texas Teachers spokesman Rob Maxwell said the fund will divest stocks as the law requires.

BlackRock is a prime target: it is the world’s largest money manager by assets. But it denies that it boycotts energy investments at all. Its $2 billion U.S. Energy Fund, for example, has ExxonMobil, Chevron and ConocoPhillips as its three top holdings. The largest renewable-energy play in the fund, solar panel-maker First Solar, comprises less than 1 percent of its holdings. Other BlackRock funds hold energy stocks as part of broader stock indexes, and still others avoid fossil fuel investments.

“You can look up Exxon and Chevron and we’re among their top five holders,” BlackRock spokesman Ed Sweeney said. BlackRock indeed owns 6.2 percent of ExxonMobil, according to the company’s annual proxy disclosure in April.

BlackRock is feeling the pressure to make this case more vocally since the political backlash began, and its recent comments on energy investing and its softer touch at shareholder meetings has led to pushback from climate investors.

BlackRock’s ESG approach is based on pressing companies for change from the inside, Sweeney said. The company voted against re-electing three directors at Exxon in 2021, for example, which climate investors had hoped was a tipping point for the company in using its shareholder power to be more aggressive in proxy contests. But the company says it has actually gotten more supportive of incumbent management teams this year, voting for fewer shareholder resolutions than in 2021 because companies are becoming more aggressive about climate mitigation.

That’s how most ESG investing works, says Spalding.

The CA 100+ approach is based on having shareholders lobby corporate managers for lower emissions, earlier and more detailed disclosure of emission-reduction plans, and improved corporate governance, she said. Specific CA100+ members take the lead in tracking each of the 166 high-carbon-emitting companies the network follows, communicating their findings to the group through semi-annual surveys, and must remain shareholders in order to be the group’s emissary to that company, she said.   

“It’s as far from a boycott as you can get,” said Spalding, who is both a former law professor and an Episcopal priest. “The bright line in our approach is that each institution makes its own decisions.”

The broader ESG community would have little problem with Florida’s approach, since ESG is based on the idea that mismanaged climate risk will eventually hurt companies’ bottom lines, Spalding said. “These are big institutions with a very clear sense of their fiduciary duty,” she said. They are clearly working on what they consider a systemic financial risk.”

Legal experts say that each institution’s independence in acting on climate goals is likely to insulate them from the antitrust claims that state attorneys general are investigating. 

Antitrust law, which bars combinations in restraint of trade because they often raise prices and impede competition, can bar boycotts, especially if they’re launched to make a company change its prices, said Hill Wellford, a partner at Vinson & Elkins, who presented a paper on ESG and antitrust at this spring’s conference of the American Bar Association. 

But a network like CA100+ that shares information, without dictating what each member should do about it, is unlikely to qualify unless the state AGs find facts about coordinated action that haven’t yet been disclosed, he said. That’s unlikely since big companies with on-staff lawyers understand how to stay out of trouble, because the law is well-settled, he said.

“If it’s not concerted action, it’s not a boycott,” said Michael Carrier, anti-trust expert at Rutgers Law School in Camden, N.J.  

Where does ESG fit into your portfolio? Join us virtually on Thursday, October 6 for our 2nd annual ESG Impact where we’ll hear from business leaders from Amazon, Heart Aerospace, United Airlines Ventures, Engine No.1 and more on how they are turning ideas into action to ensure a more sustainable & equitable future. Visit cnbcevents.com to learn more and register now.

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Mary Kay goes electric with new Pink Cadillac OPTIQ (cue the music)

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Mary Kay goes electric with new Pink Cadillac OPTIQ (cue the music)

Mark Kay’s iconic Pink Cadillac awards are driving into the future for 2025. The company’s first-ever electric Pink Cadillac OPTIQ made its debut during the Mary Kay annual Seminar in Charlotte this weekend, symbolizing a “recharged vision” for the future of the popular brand.

Pioneers in monetizing friendships female empowerment and entrepreneurship, the Pink Cadillac is considered one the most coveted symbols of achievement for Mary Kay sales reps, signifying not just great sales (GM Authority reported that it took ~$102,000 in annual sales to qualify back in 2001), but also leadership, a history of mentoring others, and a sustained reputation of excellence among their peers.

The women you see behind the wheel of the Pink Cadillac are the real deal, in other words, and the big Caddy really does mean something to people in the know.

The iconic pink Cadillac was born in 1968 when Mary Kay Ash purchased a Cadillac Coupe De Ville from a Dallas dealership and promptly had it painted to match the pale pink Mary Kay lip and eye palette. General Motors later named the color Mary Kay Pink Pearl, and the shade is exclusive to Mary Kay.

MARY KAY

Now, the Pink Cadillac is going to stand for environmental sustainability, too, enabling Mary Kay’s top performers to set yet another positive example for anyone aspiring to their success.

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“For decades, the Mary Kay pink Cadillac has symbolized accomplishment, aspiration, and the power of recognition,” said Ryan Rogers, Chief Executive Officer of Mary Kay. “With the introduction of the all-electric OPTIQ, we’re honoring that iconic legacy while driving into a transformative future—one grounded in our commitment to sustainability and dedication to inspiring and celebrating the achievements of our independent sales force for generations to come.”

Mary Kay announced its new Pink Cadillac with this video, below.

Same Legacy, New Energy


“The legacy continues with the new, all-electric (and still very pink) Cadillac Otiq [sic],” reads the official Mary Kay copy on YouTube. “The Optiq remains instantly recognizable with the pink pearl exterior, while modernizing with sleek, cutting-edge features. In addition, this vehicle showcases our commitment and dedication to sustainability by reducing our carbon footprint while continuing to inspire.”

Speaking of inspiration, I can’t hardly hear the words “Pink Cadillac” without thinking of the song. But, since “Bruce Springsteen” has become something of a trigger word for the MAGA snowflakes in the audience, I’ll post a different, but similarly great song about rose-tinted GM flagships from Dope Lemon. You can let me know what you think of it in the comments.

As ever, the Cadillac is not a “gift,” per se – but typically takes the form of a two year lease paid for by Mary Kay. No word yet on what the exact shape and form the OPTIQ deal will take.

Electrek’s Take


Whatever you might think of MLMs or businesses like Amway, Avon, or Mary Kay, they play a big part in the social dramas of hundreds (if not thousands) of neighborhoods and online communities. The people at the top are influential, and the people “below” them genuinely try to emulate them and follow their lead.

Thanks to Mary Kay, that might soon mean a decision to buy an electric vehicle – and that result would be a win for everyone.

SOURCE | IMAGES: Mary Kay.


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First drive – RBW’s electric Roadster is a sporty modern take on British classics

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First drive - RBW's electric Roadster is a sporty modern take on British classics

RBW, a British handcrafted electric car manufacturer, brought its cute little Roadster out to Santa Monica and invited us up for a drive.

RBW has built cars in the UK for a few years now, but is about to set up US manufacturing in Virginia. Along with that comes a version of its Roadster modified for the US market, and we got a sneak peek with a short drive in Santa Monica.

The RBW Roadster is a small, hand-built, retro-style EV, meant as a modern take on British classics. But it’s not an actual classic itself – it’s a newly-built vehicle, with a new body, modern safety features, and even some electronics, like CarPlay and Android Auto (but not much else – there’s no huge, cockpit-defining screen, just a 9″ one, with retro gauges in front of the driver. But it does have a backup camera!).

Our drive was short, just a quick trip up and down the most trafficky part of Pacific Coast Highway in Santa Monica, without much chance to really stretch the vehicle’s legs. So we can’t verify range or tell you how it handles on the limits, but we can tell you about the basic controls and feel of the vehicle.

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On a mostly smooth road, the car offered a comfortable ride dynamic. We didn’t get a sense of chassis noise because the top was down (which I surmised was an intentional effort by the company – I’ve used the same trick when showing off my car before).

The steering is tight and has a good weight to it, and the retro-style steering wheel felt great in my hands.

Of particular interest to me, as a long-time EV driver, is how the throttle pedal is tuned. Lots of EVs add some intentional delay or smoothing to throttle inputs, which ends up making the pedal feel mushy and indirect, reducing the control you have over the vehicle.

For reference, the cars I drive most often are the Tesla Roadster and Model 3, which both have excellent direct pedal feel.

And I’m happy to report that the RBW Roadster’s throttle pedal feels very similar to the cars I love to drive. The car feels quick, and responds exactly to what I want it to do, when I want it to do it. But it’s not excessively “punchy” like some of the more absurdly-powered EVs can be (like the Tesla Model S Plaid or the Macan Turbo S).

It does not, however, have off-throttle regenerative braking, aka one-pedal driving. Pressing the brake pedal engages regen, but letting off the throttle lets you simply coast. I personally prefer one-pedal driving, but one consideration RBW had is that since the car does not have traction control, regenerative braking on the rear axle (where the motor is) could potentially present a safety issue on slippery roads. So, fair enough I guess, but I still do prefer one pedal.

Speaking of pedals, the brake pedal was placed quite far from the accelerator. This is a plus and a minus – a minus because it’s quite different from most vehicles these days, where the pedals are placed closer, for ease of reaching them with your right foot. A plus because higher separation might reduce the chance of “crossing the pedals” and accidentally pressing both with the same foot in an emergency situation, and because it enables left-foot braking, which is generally better for performance driving… in the hands of a trained driver, anyway.

That said, this isn’t exactly a performance car. It’s fun, it’s responsive, but it’s not powerful. The version we tested had a 0-60 time of only around 9 seconds, so it didn’t give you the “throw your head back” feeling that so many EVs on the road these days do. It’s responsive, but not fast.

RBW says the American version will have more motor power than the UK version, but it’s still trying to figure out exactly how to tune it. This should bring 0-60 times down by about a second. But we can’t help but think that it would be nice with even a little more power than that, which we think should be possible given the car’s 50kWh battery and ~2,900lb weight, specs that are similar to my similarly-sized Tesla Roadster (as you can see below – along with the GT version of the RBW, on the right).

Here’s an issue: all the specs we were given seem extremely fluid. While talking to the company, I got several different numbers for any given specification. It seems to me like the company is still figuring out exactly what changes it will make for its US models.

This is somewhat to be expected of a small, hand-built manufacturer, especially since buyers can ask for certain modifications or personalizations (seat height, for example, which is important in a small car like this). But it does make it tough to write an article about it.

Nevertheless, the car drives well, and RBW seems to have gotten a lot right about the dynamics of the vehicle. It executes well on its goal – a fun, small British-style roadster, a great weekend car for those who have the means.

As for the means, the RBW Roadster will start in the $140-150k range, so it’s not cheap. But if you’re looking for something like this, it’s just about the only game in town, and it’s a good execution of the feel of a nimble roadster for weekend cruising.

RBW is currently taking $1,000 reservations for 2026 builds, and you can have a look at configurations (paint, roof, interior, wheels) over on its website.


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This cool-looking electric motorcycle wants to pretend to be an e-bike

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This cool-looking electric motorcycle wants to pretend to be an e-bike

Canadian startup Beachman has just unveiled its latest electric two-wheeler, the ’64, a vintage-styled electric motorcycle that looks like it rolled straight out of the 1960s. With throwback café racer design and a respectable top speed of 45 mph (72 km/h), it’s a slick little ride with a curious twist: it calls itself an e-bike.

It’s not just a casual reference, but it’s baked into the name. The full model name on Beachman’s website is the ’64 E-Bike.

While I’d generally be inclined to give them the benefit of the doubt, since many motorcyclists refer to electric motorcycles as “e-bikes” and the term has a broad definition in colloquial usage, the company is obviously casting more in the “electric bicycle” end of the spectrum. They even say on their website that it is “rideable as either a Class II E-Bike or a Registered Moped (in most states).”

Despite lacking pedals entirely – and clearly designed more like a lightweight electric motorcycle – the Beachman ’64 comes with a selectable “E-Bike Mode” that limits it to 20 mph (32 km/h). The implication? That riders can use this obvious motorcycle in bike lanes like a Class 2 e-bike. Legally speaking, that’s a stretch, to put it mildly. In fact, I’m not currently aware of any state where that’s explicitly legal, though it could probably pass in many states due to the current state of enforcement we usually see.

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According to Beachman, the ’64 has three ride modes:

  • E-Bike Mode: 20 mph (32 km/h) top speed, which the company says is “perfect for bike lanes.”
  • Moped Mode: 30 mph (48 km/h) top speed, which does match legal definitions for mopeds in some jurisdictions, even without pedals.
  • Off-Road Mode: 45 mph (72 km/h) top speed, no pretense – just a motorcycle.

In practice, I don’t think it’s a stretch of the imagination to assume that most riders will likely keep it in Off-Road Mode, where the bike delivers its full 3,000W performance and offers the most fun. And specced with decently large batteries, it could actually do some modest commuting, even at higher speeds. The ’64 comes with a removable 2.88 kWh battery (or optional 3.6 kWh upgrade), and range is estimated at 55–70 miles, depending on configuration. It charges to 80% in three hours and even features regenerative braking.

The company leans heavily on its “timeless design” messaging, and to their credit, the ’64 nails the aesthetic. It looks great. The frame, tank, and seat all channel classic motorcycle vibes while skipping the modern digital overload – no apps or touchscreens here. Just a clean, simple throttle and some retro charm.

But for all the cool factor, the classification confusion raises eyebrows. Calling a 45 mph, pedal-less motorcycle an “e-bike” in any meaningful legal sense is a misfire. Some states allow low-speed mopeds in bike lanes, but others draw the line at motorized vehicles without pedals. The ’64 might get away with it in limited cases, but most jurisdictions will (rightfully) require it to be registered and insured as a motor vehicle. And it’s unclear if explaining to the officer, “But I had it in 20 mph mode…” will help much on the side of the road.

Still, Beachman is aiming at a particular rider who wants motorcycle style and speed without all the baggage. With a starting price of $4,800, the ’64 could be an appealing step-up for e-bike riders looking to graduate into something faster without committing to a full-sized gas bike.

Just don’t expect to blend in on the bike path.

Electrek’s Take

Look: The bike looks fantastic and probably rides well, but come on, it’s a 230 lb (105 kg) motorcycle.

Let’s stop calling every throttle-only EV an e-bike just because it’s got two wheels, a battery, and a button that neuters it to 20 mph. This has gotten silly. You built a great-looking bike. But it’s a bike in the way a motorcycle rider refers to his “bike.” It’s not a bicycle, and it’s not a bike lane vehicle any more than a Sur Ron is. At least not if you respect your fellow two-wheel riders around you.

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