- The American Federation of Teachers urged major investment firms to reassess Tesla’s valuation, citing financial instability. The letter highlights declining profits, shrinking margins and falling sales in key markets.
- Tesla’s stock dropped 28% in a month, with analysts warning it could fall further. AFT President Randi Weingarten said this could negatively impact teachers’ retirement savings.
- Weingarten often supports Democratic platforms and is a critic of President Trump.
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The American Federation of Teachers (AFT), one of the nation’s largest labor unions, is raising concerns over Tesla’s stock decline and its potential impact on teacher retirement savings.
The AFT, which represents 1.8 million members, has called on major investment firms — including BlackRock, Fidelity, and Vanguard — to reevaluate Tesla’s valuation.
In a letter to BlackRock CEO Larry Fink and other top asset managers, AFT President Randi Weingarten warned that Tesla’s financial stability is in question.
“Tesla’s latest financial disclosures should raise alarms.”
Randi Weingarten, AFT President
Declining profits and sales cited by AFT
The letter cited a 23% year-over-year decrease in Tesla’s profits. The company reported $2.3 billion in profit last quarter, marking a 71% decline. Tesla’s profit margin has also slipped, while sales in key markets have weakened.
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In California, Tesla’s fourth-quarter sales fell by 8%. Meanwhile, the company reported a 60% decline in sales in Germany, further contributing to investor concerns.
Weingarten underscored the urgency she feels over the situation, stating, “Just this week, we saw Tesla stock continue to sink faster than a Cybertruck in quicksand.”
Tesla’s stock has dropped 28% in the past month, falling to $290 per share — down from a high of $489 just weeks ago. Some analysts predict the stock could fall further to $135 per share.
Weingarten warned that such a decline would significantly impact teachers’ retirement funds, which hold approximately $4 trillion in assets. She copied Tesla CEO Elon Musk and the company’s board on the letter, urging action from Tesla’s six largest stakeholders.
AFT, Weingarten known for Democratic Party advocacy
Weingarten, known for her advocacy of Democratic policies, has been vocal in her opposition to President Donald Trump’s administration. The AFT recently filed a lawsuit against the Department of Education over a directive eliminating diversity, equity, and inclusion programs in schools.
As of early Feb. 28, there has been no response from the investment firms or Tesla’s leadership regarding Weingarten’s letter.
[Karah Rucker]
ONE OF THE COUNTRY’S LARGEST LABOR UNIONS – THE AMERICAN FEDERATION OF TEACHERS – IS TAKING AIM AT TESLA –
RAISING CONCERNS ABOUT THE COMPANY’S CURRENT STOCK PLUNGE –
AND THE IMPACT IT COULD HAVE ON TEACHER RETIREMENT SAVINGS.
THE A-F-T –IS CALLING ON MAJOR INVESTMENT GROUPS TO RE-EVALUATE TESLA –
SENDING A LETTER TO BLACKROCK, FIDELITY, VANGUARD AND OTHERS.
THE UNION – REPRESENTS 1.8 MILLION MEMBERS—
AND IS CALLING ON TESLA’S LARGEST INSTITUTIONAL INVESTORS TO TAKE A HARD LOOK AT THE COMPANY’S VALUATION.
A-F-T PRESIDENT RANDI WEINGARTEN TOLD BLACKROCK CEO LARRY FINK AND OTHER MAJOR ASSET MANAGERS, TESLA’S FINANCIAL STABILITY SHOULD BE IN QUESTION.
IN THE LETTER SHE WRITES –
TESLA’S LATEST FINANCIAL DISCLOSURES SHOULD RAISE ALARMS.
SHE CITES a 23 percent year over year decrease in profits.
2.3 billion in profit last quarter, down 71 percent.
profit margin slipped.
sales in California fell 8 percent in Q4
And Tesla reported a 60 percent decline in sales in Germany.
WEINGARTEN DIDN’T HOLD BACK –
SAYING JUST THIS WEEK, WE SAW TESLA STOCK CONTINUE TO SINK FASTER THAN A CYBERTRUCK IN QUICKSAND.
TESLA STOCK HAS FALLEN 28% IN THE PAST MONTH –
SLIDING TO $290 PER SHARE— DOWN FROM A 489 DOLLAR HIGH A FEW WEEKS AGO.
SOME ANALYSTS SUGGEST TESLA COULD SEE ITS SHARES DROP TO 135 DOLLARS.
AND WEINGARTEN POINTED TO THAT – SAYING IT WOULD BE A BLOW TO TEACHERS’ RETIREMENT FUNDS – WHICH HOLD ROUGHLY 4 TRILLION DOLLARS IN ASSETS.
WEINGARTEN COPIED TESLA CEO ELON MUSK AND THE COMPANY’S ENTIRE BOARD ON THE LETTER –
CALLING FOR ACTION FROM TESLA’S SIX LARGEST STAKEHOLDERS.
SHE SAYS THE UNION IS MOVING QUICKLY TO SAFEGUARD WORKERS’ RETIREMENTS AMID GROWING COMPETITION IN THE ELECTRIC VEHICLE MARKET.
WEINGARTEN IS KNOWN FOR HER ADVOCACY FOR DEMOCRATIC PLATFORMS –
AND HAS MADE HER OPPOSITION TO THE TRUMP ADMINISTRATION KNOWN.
THIS LETTER TO INVESTMENT GIANTS COMES AS WEINGARTEN AND HER UNION CHALLENGE PRESIDENT TRUMP’S POLICIES.
RECENTLY, THE UNION FILED A LAWSUIT AGAINST THE DEPARTMENT OF EDUCATION OVER A DIRECTIVE DISMANTLING DIVERSITY, EQUITY, AND INCLUSION PROGRAMS IN SCHOOLS.
AS OF THIS RECORDING – THERE’S BEEN NO REACTION FROM THE ENTITIES THAT RECEIVED WEINGARTEN’S LETTER.
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