COPENHAGEN, April 2 (Reuters) - Sweden's largest insurer

Folksam said on Wednesday it has sold its stake in electric car

maker Tesla over concerns about the company's stance on

workers' rights.

Tesla, headed by billionaire Elon Musk, is facing a backlash

from unions and some pension funds in the Nordic region over its

refusal to accept a demand from Swedish mechanics for collective

bargaining rights covering wages and other conditions.

Tesla did not immediately respond to a request for

comment. The company has said it offers as good, or better,

terms than those demanded by the unions.

Folksam said in a statement it had tried to influence

Tesla, together with other owners, through proposals submitted

to the company's annual general meeting two years in a row.

"Unfortunately, no improvement has been seen and a decision

has therefore been made to divest the holding," its head of

asset management and sustainability Marcus Blomberg said.

Folksam's holding amounted to 0.017% of Tesla and had a

market value of 1.6 billion Swedish crowns ($159.98 million) at

the time of divestment, a spokesperson said.

($1 = 10.0015 Swedish crowns)