Billionaire investor Elon Musk is under scrutiny from a major U.S. labor union after Tesla (TSLA) stock declined 30% this year. In an unusual move, the American Federation of Teachers (AFT) has urged top fund managers to reconsider their Tesla holdings, questioning whether the TSLA stock remains a prudent investment given its current trajectory.
For context, AFT is among the leading unions in the U.S., representing over 1.7 million educators, healthcare professionals, and public employees.
Union Steps In
Randi Weingarten, president of the AFT, wrote a letter to major Tesla investors like BlackRock (BLK), Vanguard, and T. Rowe Price, expressing concerns about the impact on members’ pension funds. The union argues that continued investment in Tesla poses unnecessary risks to their members’ financial futures.
In an interview, Weingarten said the union worries that asset managers may overlook its issues due to Musk’s…
