The American Federation of Teachers, one of the largest teachers unions in the U.S., is concerned about the falling price of Tesla stock, which has left many teachers and retirees watching their investment in the electric vehicle giant plummet in value.
What Happened
The union has sent letters to asset management companies asking for honest valuations on Tesla stock, citing increased concerns over CEO Elon Musk’s political push. American Federation of Teachers President Randi Weingarten expressed her concerns, stating that asset managers are afraid to comment on the fair valuation of Tesla due to Musk’s influence.
Concerns Over Tesla’s Valuation
Weingarten highlighted a disconnect between Tesla’s stock price and its actual value, citing a report by JPMorgan. She hopes that more analysts will share their honest opinions to ensure that teachers and teacher retirees understand the fair value of the company. Weingarten emphasized that the union is concerned about teacher retirement benefits and is asking money managers if Tesla stock should be divested.
Political Push and Potential Consequences
Weingarten noted that Musk’s political push and potential dismantling of the Department of Education could be influencing the possible divestment of Tesla stock. However, she emphasized that the union is trying to remain neutral and not look at the issue through a political lens. Weingarten warned that if asset managers fail to provide honest valuations, it may be too late to divest the stock if it is currently overvalued, making it hard to “create the replacement income” for investors if Tesla stock continues to fall.
Importance of Honest Valuations
The American Federation of Teachers represents 1.8 million members, and Weingarten’s concerns come less than a month after she criticized Musk and President Donald Trump for taking a “wrecking ball” to the Department of Education. The push for honest valuations on Tesla stock comes as the EV company’s sales fall significantly in Europe and California, with some attributing the drop to Musk’s political agenda.
Tesla’s Brand Value Takes a Hit
A Brand Finance survey found that Musk’s comments may have hurt Tesla’s brand value, with the company falling to 36th place in the 2025 rankings, down from 18th place in 2024. Tesla’s brand value decreased by 26% to $43 billion in 2025, with scores in categories such as “reputation,” “recommendation,” and “consideration” all falling from the prior year.
Insider Sales and Pension Fund Divestment
Tesla insiders, including Chair Robyn Denholm, have been selling Tesla stock, while Europe’s largest pension fund sold out of its stake in Tesla during the third quarter due to concerns over Musk’s $56 billion pay package. Tesla stock is down 5.5% to $263.82, with a 52-week trading range of $138.80 to $488.54, and is down 30.4% year-to-date in 2025.