Tim Walz Retreats After Gloating Over Tesla Stock Plunge

Minnesota Governor Tim Walz has backtracked on comments celebrating Tesla’s falling stock price after learning his state’s pension fund holds over 1.6 million shares. The reversal follows sharp criticism from business leaders and a pointed jab from Elon Musk himself. Walz now claims his remarks were meant as a jest aimed at Musk’s ties to President Trump rather than a serious dig at the company.

Walz made the initial remarks at a Wisconsin town hall earlier this week. He told the crowd he added Tesla to his stock app for a daily boost as shares dropped to 225 dollars. The quip drew laughs but quickly sparked backlash when reports revealed Minnesota’s hefty Tesla stake.

That stake valued at over 442 million dollars as of June 2024 comes from the state’s retirement fund managed by the Minnesota State Board of Investment. The fund serves public employees including teachers and state workers who rely on its stability. Tesla’s 41.4 percent drop this year has already cost the fund dearly raising questions about Walz’s judgment.

Critics pounced on the governor’s gaffe with investor Kevin O’Leary calling it beyond stupid on CNN. O’Leary noted Tesla employs over 80000 Americans and argued Walz should focus on his constituents’ financial health. The Shark Tank star dubbed Walz a bozo for overlooking the pension fund’s exposure.

Elon Musk fired back on X with a biting retort tying Walz’s comment to his failed 2024 vice presidential run alongside Kamala Harris. Musk wrote he gets a boost from recalling Walz’s election loss rather than Tesla’s stock woes. The exchange fueled a firestorm online as Tesla fans rallied to Musk’s defense.

Walz tried to walk back the controversy today insisting he was just joking about Musk’s role in the Department of Government Efficiency. He admitted to reporters he needs to be careful being a smartass given the stakes for Minnesotans. Yet the damage may linger as political foes seize on the misstep ahead of a possible 2028 presidential bid.

Tesla’s stock woes stem partly from consumer backlash to Musk’s Trump ties and his push to cut federal spending via DOGE. Sales have slumped in key markets like Europe and California with vandals targeting Tesla sites in protest. The company shed nearly 50 percent of its value since December despite a slight uptick to 248 dollars Friday.

The episode highlights a disconnect between Walz’s rhetoric and his state’s interests exposing him to charges of hypocrisy. It also underscores Tesla’s polarizing role in American business as Musk wields influence in Trump’s administration. For now Walz faces a tough road to rebuild trust with voters and investors alike.