Teachers’ Union Urges Major Investors to Reassess Tesla Valuation

The American Federation of Teachers warns of risks to pension funds due to Tesla’s declining stock price, falling sales, and competitive challenges.

Randi Weingarten, president of the American Federation of Teachers, sent a letter to six major asset management firms urging a review of Tesla’s valuation, citing risks to $4 trillion in retirement assets tied to union members' pensions.
Tesla’s stock has dropped 30% in 2025, with its market capitalization falling below $1 trillion for the first time since November, raising concerns about overvaluation and financial instability.
The union highlighted sharp declines in Tesla’s sales, including a 45% year-on-year drop in Europe and a 12% annual decrease in California, Tesla’s largest U.S. market.
Weingarten emphasized Tesla’s eroding pricing power, missed profit margin expectations, and growing competition in the EV market, including from new charging networks backed by major automakers.
The union also pointed to Tesla CEO Elon Musk’s controversial political involvement as a factor in the company’s declining brand favorability, which has reached an all-time low of 3%.