Randi Weingarten AFT President | American Federation of Teachers
Today, American Federation of Teachers (AFT) President Randi Weingarten called upon more than 75 state and city chief fiduciary officers to examine their pension funds' investments in Tesla. These officers oversee major U.S. public pension funds that secure the retirement of teachers, nurses, and other workers. Tesla's stock is a significant part of these investments.
Tesla's first quarter report, also released today, highlights a significant downturn in U.S. vehicle demand, which aligns with similar European sales data from earlier this week. The company's share price has declined roughly 30 percent this year, a substantial drop from its peak in December 2024. Tesla’s market value has decreased from $1.5 trillion to approximately $800 billion over the past three months.
The AFT's communication urges treasurers and comptrollers to push asset managers to evaluate their Tesla assets and seek greater transparency from the company on corporate loans secured by CEO Elon Musk’s 13 percent stake. Musk previously pledged over 230 million Tesla shares as collateral for these loans, details of which remain undisclosed.
Notable pension funds such as the California State Teachers’ Retirement System and the Chicago Teachers’ Pension Fund were among those contacted.
Previously, in February, Weingarten addressed financial giants like BlackRock, Vanguard, and Fidelity, stressing that the inclusion of Tesla stocks posed a dangerous retirement risk. AFT members are part of pension funds worth around $4 trillion. No response has been received from these firms.
“Today’s precipitous drop in Tesla sales increases the retirement risk to plans that millions of nurses, teachers, and other workers are invested in,” stated Weingarten. She emphasized the members' necessity to retire securely and expressed disappointment in the lack of action from asset managers. The recent appeal to fiduciaries seeks immediate clarity and response.