March 28, 2025, ST. PAUL, Minn. — Minnesota Governor Tim Walz has found himself at the center of a firestorm after comments he made mocking Tesla’s declining stock price went viral earlier this month. The remarks, delivered during a town hall in Eau Claire, Wisconsin, on March 18, have drawn sharp criticism from political opponents, financial experts, and even some of his own constituents. The controversy stems from the fact that Minnesota’s state pension funds, overseen by a board on which Walz serves, hold millions of shares of Tesla stock—investments that directly impact the retirement security of over 180,000 state employees, including teachers, police officers, and firefighters. Critics argue that Walz’s public trashing of Tesla undermines his fiduciary responsibility to safeguard those funds, raising questions about the intersection of politics, personal sentiment, and financial stewardship.
During the Wisconsin town hall, titled “The People vs. Musk,” Walz took aim at Tesla and its CEO, Elon Musk, who has become a polarizing figure due to his role as head of President Donald Trump’s Department of Government Efficiency (DOGE). Holding up his iPhone, Walz quipped, “Some of you know this. 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.” The crowd erupted in cheers as he continued, “And if you own one, we’re not blaming you. You can take dental floss and pull the Tesla thing off” (Fox News, March 21, 2025). Walz’s comments were widely interpreted as a jab at Musk, whose support for Trump and controversial leadership style have made him a frequent target of Democratic criticism.
The timing of Walz’s remarks coincided with a significant downturn in Tesla’s stock price, which has fallen 41.4% year-to-date as of March 2025, according to Fox News. The decline has been attributed to a combination of factors, including a series of vandalism incidents targeting Tesla vehicles and dealerships—acts linked to backlash against Musk’s political involvement—and broader market volatility affecting the electric vehicle sector (Fox News, March 21, 2025). By mid-March, Tesla shares were trading at approximately $225, down from a high of $479.86 in December 2024, wiping out billions in market value (Mediaite, March 23, 2025).
What Walz did not mention during his speech—and what has since fueled the controversy—is Minnesota’s substantial financial stake in Tesla. According to a June 2024 report from the Minnesota State Board of Investment (SBI), the state held 1.6 million shares of Tesla stock in its retirement fund and an additional 211,332 shares in its non-retirement fund (Minnesota State Board of Investment, June 30, 2024). As of that date, those holdings were valued at approximately $319.6 million and $42 million, respectively, based on Tesla’s closing price of $199.75. However, with the stock’s precipitous drop since December, the retirement fund’s Tesla holdings alone are now worth roughly $360 million—a loss of over $370 million from their peak value late last year (Washington Examiner, March 20, 2025).
The SBI, established in 1885 under the Minnesota Constitution, is tasked with managing the assets of state and local employee benefit plans, retirement savings plans, and other public funds. Walz, as governor, serves as the board’s chair, alongside State Auditor Julie Blaha, Secretary of State Steve Simon, and Attorney General Keith Ellison—all Democrats (KTTC, March 21, 2025). The board’s primary responsibility is to act as a fiduciary, making sound investment decisions to ensure the long-term financial security of Minnesota’s public employees and retirees. With approximately 180,000 state workers relying on these funds for their pensions, including critical frontline professions, any significant loss in value has far-reaching implications.
Walz’s comments have prompted accusations that he is neglecting his fiduciary duty by publicly rooting for Tesla’s financial struggles. Venture capitalist and “Shark Tank” investor Kevin O’Leary was among the most vocal critics, lambasting the governor during a CNN panel on March 20. “That poor guy didn’t check his portfolio and his own pension plan for the state. It’s beyond stupid what he did,” O’Leary said. “What’s the matter with that guy? He doesn’t check the well-being of his own constituents?” (Yahoo Finance, March 25, 2025). O’Leary’s remarks underscored a broader sentiment among financial experts that Walz’s rhetoric could erode confidence in Tesla, potentially exacerbating losses for Minnesota’s pensioners.
Minnesota Republican Senator Jeff Howe echoed this sentiment, calling Walz’s comments “reckless” in an interview with ABC 6 News. “A stock drop doesn’t just hurt Wall Street—it impacts state employees and retirees,” Howe said. “The governor should know better” (KAAL-TV, March 21, 2025).
Legal experts have weighed in on whether Walz’s actions could constitute a breach of fiduciary responsibility. Under Minnesota law, fiduciaries are required to act with prudence, loyalty, and care in managing pension assets, prioritizing the interests of beneficiaries over personal or political considerations. While Walz’s comments do not directly influence investment decisions—those are handled by professional fund managers—some argue that his public stance could indirectly harm the state’s financial interests by signaling disinterest in Tesla’s success. Condemning Tesla while being on a board to oversee retirement funds in Minnesota, which are heavily invested in Tesla, while acting in a fiduciary role, is a rocky path to slide down.
No formal legal challenges have emerged as of this writing.
Walz Walks Back His Words
Facing mounting criticism, Walz attempted to defuse the situation during a subsequent event in Rochester, Minnesota, on March 22. “I was making a joke. These people have no sense of humor. They are the most literal people,” he said, referring to his detractors. “But my point was, they’re all mad, and I said something I probably shouldn’t have about a company” (Fox 9, March 23, 2025). He later elaborated in New York, admitting, “I have to be careful about being a smartass,” while doubling down on his criticism of Musk’s leadership and political involvement (The Times of India, March 24, 2025).
Despite his retraction, the damage may already be done. Tesla CEO Elon Musk fired back on X, mocking Walz’s electoral loss as Kamala Harris’s vice-presidential running mate in November 2024. “Sometimes when I need a little boost, I look at the @JDVance portrait in the White House and thank the Lord,” Musk wrote, referencing Vice President JD Vance (Daily Mail, March 20, 2025). The White House’s Rapid Response team also joined the fray, posting, “When we need a little boost during the day at the White House, we walk around the corner from our office and admire these beautiful portraits,” alongside images of Trump and Vance (Fox News, March 21, 2025).
Walz’s remarks come amid a broader wave of anti-Tesla sentiment among some Democrats, fueled by Musk’s alignment with Trump and his efforts to streamline federal spending through DOGE. Democratic lawmakers like New York Representative Alexandria Ocasio-Cortez and Massachusetts Senator Elizabeth Warren have publicly criticized Musk, with Warren alleging that Trump and Musk “turned the White House into a Tesla dealership” (Daily Caller, March 21, 2025). Meanwhile, 23 New York state senators recently urged Comptroller Thomas DiNapoli to divest the state’s pension fund of its 3.5 million Tesla shares, citing volatility and profit declines (Washington Examiner, March 20, 2025).
Yet Tesla remains a significant holding in pension funds across the country, including in blue states like Minnesota and Oregon, where the latter holds $135.3 million in Tesla stock (Daily Caller, March 21, 2025). Dr. OJ Oleka, CEO of the State Financial Officers Foundation, told the Daily Mail, “Practically every state has some exposure to Tesla stock,” emphasizing its ubiquity in retirement portfolios (Daily Mail, March 24, 2025). The widespread ownership underscores the stakes involved when political rhetoric collides with economic reality.
As Walz continues his town hall tour of Republican-leaning districts, the Tesla controversy could haunt his political future. For Minnesota’s pensioners, the immediate concern is whether Tesla’s stock can recover from its current slump. The company has announced plans to shift focus to affordable models, the Model Y “Juniper,” and autonomous ride-sharing platforms, which some analysts believe could spark a rebound (Teslarati, March 21, 2025). However, ongoing vandalism and political backlash may continue to weigh on investor confidence.
For now, Walz’s office has declined to comment further, leaving unanswered questions about how he reconciles his public statements with his fiduciary role. As the debate rages on, one thing is clear: in the volatile world of Tesla stock, the line between political theater and financial responsibility is razor-thin—and Minnesota’s retirees are caught in the crossfire.
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