Teachers union urges review of Tesla investments due to financial concerns

Today, the American Federation of Teachers (AFT) called on major asset managers to reassess their investments in Tesla. AFT President Randi Weingarten sent a letter to the CEOs of Blackrock, Vanguard, State Street, T. Rowe Price, Fidelity, and TIAA. The letter urged these firms to take immediate action regarding their investments in Tesla due to concerns over the company's financial health.

Tesla's stock has dropped 23% this year compared to a 1.3% decline in the Nasdaq index. AFT members have significant investments in pension funds that include Tesla shares. These funds are part of an estimated $4 trillion in deferred wages invested by teachers and nurses.

The AFT Trustee Council includes over 50 members who serve as trustees on public pension funds across the United States. They represent large entities such as the California State Teachers’ Retirement System and the New York State Teachers’ Retirement System.

Randi Weingarten expressed concern about safeguarding workers' retirements: "This is about safeguarding workers’ retirements...we’re talking about working people’s deferred wages and retirement income." She highlighted recent financial disclosures from Tesla showing a decrease in profits and operating income, which she described as part of a troubling pattern.

Weingarten requested that asset managers provide details on their assessment of Tesla's valuation and actions taken to protect AFT members' interests.

The full letter is available for review here: www.aft.org/sites/default/files/media/documents/2025/FinkLtr.pdf.

The AFT represents 1.8 million professionals including teachers, healthcare workers, and government employees.

Information from this article can be found here.