Topic: US News
by MPeriod
Posted 1 month ago
In this article, we discuss:
Randi Weingarten, the President of the American Federation of Teachers (AFT), is urging a review of Tesla's valuation. This call comes in light of Tesla's declining stock prices, increasing competition in the electric vehicle (EV) market, and a notable decrease in customer trust attributed to CEO Elon Musk.
In her letter sent Thursday, Weingarten highlighted several issues:
She remarked, "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 explicitly criticized Musk, stating that his actions have contributed to a decline in public trust towards Tesla. She referenced data from the American EV Jobs Alliance indicating that prospective EV consumers are increasingly viewing Musk negatively, complicating customer expansion efforts.
“Just last week, Stifel analyst Stephen Gengaro declared that Tesla’s net favorability is at an all-time low at 3 percent, down from 9 percent in January 2024,” she wrote.
Representing 1.8 million education, healthcare, and public-sector workers, Weingarten emphasized that her members oversee approximately $4 trillion in retirement security assets. She stated, "Every worker deserves a safe and secure retirement. Just this week we saw Tesla stock continue to sink faster than a Cybertruck in quicksand. So we’re asking asset managers to honestly look at their investments in Tesla,” sharing this on the social media platform Bluesky.
Weingarten has a history of advocating for Democratic platforms and opposing various actions by the Trump administration. Recently, her union took legal action against the Department of Education regarding a guidance letter aimed at eliminating diversity, equity, and inclusion programs in educational institutions.