In a bold move, Randi Weingarten, President of the American Federation of Teachers (AFT), has called on Tesla’s top investors to reevaluate their stakes in the company, citing concerns over Elon Musk’s actions and the company’s declining reputation.
Targeting Musk’s Influence on Tesla’s Future
Weingarten, who leads a powerful union with 1.8 million members, sent a letter to six major asset managers outlining the deterioration of Tesla’s brand, its falling stock price, and the increasing strength of competitors in the electric vehicle market. The letter was also copied to Tesla’s board and Musk himself.
“Given these mounting concerns and the potential material impact on pension fund portfolios, I would appreciate a response detailing your firm’s assessment of Tesla’s current valuation and the steps you are taking to protect AFT members who are your clients and beneficiaries,” Weingarten wrote.
Elon Musk’s Role in Tesla’s Reputation Decline
Weingarten directly pointed the finger at Musk, claiming his polarizing public persona and political agenda are damaging Tesla’s image among consumers.
She cited a recent report from the American EV Jobs Alliance, which found that “EV swing consumers—those open to EVs once costs drop—view Musk negatively, making customer expansion even harder.”
Additionally, Stifel analyst Stephen Gengaro reported that Tesla’s net favorability rating has dropped to an all-time low of 3%, down from 9% in early 2024.
The Battle Over Education and the Future of America
Weingarten’s move is part of a broader battle against Musk and Donald Trump’s controversial proposal to eliminate the Department of Education. Critics argue that this would lead to the privatization of education, disproportionately harming lower-income families who rely on public schools.
“A total privatization of education will also lead to a less educated population (which is good for Republicans since they rely on misinformation and ignorance to win elections),” Weingarten warned.
The AFT controls around $4 trillion in retirement security assets, giving it significant influence in the stock market. If major investors heed Weingarten’s call, it could put financial pressure on Tesla at a time when the company is already facing challenges.
“Every worker deserves a safe and secure retirement. Just this week we saw Tesla stock continue to sink faster than a Cybertruck in quicksand,” Weingarten wrote on Bluesky.
A Crucial Moment for America’s Future
As the fight over public education intensifies, Weingarten’s call to action is seen as a direct challenge to Musk and Trump’s vision for the country. With Tesla’s stock under scrutiny and consumer trust in decline, this could mark a pivotal moment in the battle for America’s future.
Will investors continue to back Tesla, or will they distance themselves from Musk’s increasingly controversial agenda?
