Tesla (TSLA) stock is currently down 50% from its recent highs, although it is still up 39% over the last 12 months. With a market cap of roughly $759 billion, dozens of financial institutions across the world hold a substantial stake in the positive outcome of the electric car maker’s stock.
Now, one prominent politician is receiving backlash after making a recent post on Elon Musk-owned X praising the stock’s recent decline.
Tim Walz, the 2024 Democratic vice presidential candidate and current Minnesota state governor, is understandably not a fan of Elon Musk. In the posted video, Walz quipped, “... On the iPhone they’ve got that little stock app. I added Tesla to it to give me a little boost during the day. $225 and dropping! And if you own one, we're not blaming you. You can take dental floss and pull the Tesla [emblem] off.”
His comments have sparked criticism, particularly from those pointing out the position Minnesota holds in Tesla stock.
Kevin O’Leary’s Fiery Response
Among the most vocal critics of Walz’s comments was Kevin O’Leary, the billionaire investor and Shark Tank star. O’Leary posted a clip of a CNN appearance, lambasting Walz’s lack of awareness regarding his own state’s pension investments in Tesla.
In his CNN appearance, O’Leary said, “That poor guy didn't check his portfolio in his own pension plan in his own state. It's beyond stupid what he did. He's talking down a 3.5% weighting in his own pension plan. I mean, what's the matter with that guy? He doesn’t check the well-being of his own constituents in his own state? That’s their investment fund!”
In a later post on LinkedIn about his CNN comments, he continued, “That poor guy didn’t check his portfolio in his own pension plan for the state. It’s beyond stupid what he did. He's talking down 1.8 million shares in his own state’s pension plan. What’s the matter with that guy? He doesn’t check the well-being of his own constituency in his state?”
Minnesota’s Investment in Tesla
The numbers support O’Leary’s argument. Minnesota’s state pension funds hold approximately 1.6 million shares in Tesla through the state’s retirement funds, in addition to 211,000 shares in non-retirement funds. As Tesla’s stock continues to decline, these holdings are suffering losses, impacting the finances of thousands of state employees, retirees, and investors.
Tesla stock currently sits around $246, a respectable increase since the “$225 and dropping” comments. At the claimed 1.8 million shares, this would represent a roughly $442 million position in Tesla by the state of Minnesota.
The Broader Implications
Tesla’s stock has seen fluctuations due to a variety of factors, including production challenges, shifting market sentiment, and increased competition in the electric vehicle sector. However, the politicization of Tesla’s performance adds another layer of complexity to the conversation.
Walz’s remarks and O’Leary’s response are indicative of a larger conversation currently surrounding Tesla. Elon Musk’s substantial move into politics and alignment with Republicans has led to increasing polarization around the company. Tesla is currently the subject of growing protests, with several instances of vandalism against the company. With key political figures like Walz taking a public stance against the company’s success, it’s likely these issues will only get more complicated.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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