Comptroller Brooke E. Lierman issued a statement on Friday in support of American Federation of Teachers President Randi Weingarten’s letter raising concerns about the risks public pension funds face by investing in Tesla, citing the company’s weak performance, governance issues, and lack of transparency.
“In her letter to State Financial Officers this week, AFT President Randi Weingarten raised serious and legitimate concerns about the risks Tesla poses to long-term investors, and I agree that now is the time for action.
Tesla’s declining stock price, weak first-quarter performance, and growing questions about Elon Musk’s divided attention and use of Tesla shares as collateral all point to significant failures in corporate governance. These issues matter — not just because Tesla is a high-profile company, but because public pension systems, including the State of Maryland’s, are exposed to these risks.
I join the AFT in calling on Tesla’s board to disclose the terms of Elon Musk’s pledged shares and any loans backed by them. Public shareholders deserve to know whether a forced sale could destabilize the company and harm investors.
As fiduciaries, board members should never allow a company to operate without a full-time CEO, and yet not only are Tesla board members allowing it, they are silent on this important issue and continue to demonstrate their lack of independence from Elon Musk.
As Comptroller of Maryland, representing thousands of public employees as my constituents, I owe it to them to ask hard questions and demand accountability from the companies our state pension system invests in – including Tesla. I stand with the AFT in calling for transparency and responsible corporate governance at Tesla — and I will continue working to ensure that Maryland’s public retirement assets are managed with diligence and integrity.”