The head of one of the largest U.S. labor unions has called on major asset managers to reassess Tesla’s (TSLA.O) valuation, as the electric vehicle maker’s shares have fallen by 30% this year.
Randi Weingarten, president of the American Federation of Teachers (AFT), wrote to major investment firms holding Tesla stock—including BlackRock, Vanguard, and T. Rowe Price—expressing concerns about the potential risks to union members’ pension portfolios.
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Tesla’s market capitalization slipped below $1 trillion this week for the first time since November, following reports of a decline in European sales in January. The stock’s downward trajectory has raised concerns among investors, particularly as the company faces increased competition in the EV market and a drop in fourth-quarter profits.
In an interview, Weingarten emphasized that the union was not advocating for the sale of Tesla shares but rather urging fund managers to properly assess risks associated with the company. She suggested that some firms may be reluctant to scrutinize Tesla’s challenges due to CEO Elon Musk’s growing influence as a key adviser to U.S. President Donald Trump.
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“Our concern is that because of the politics, and the proximity Mr. Musk has to Mr. Trump, they are standing down on this rather than doing their jobs,” Weingarten said.
Weingarten has previously criticized Trump’s policies, including his proposal to shut down the Department of Education.
Source: Reuters