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Minnesota Governor Tim Walz’s penchant for controversial statements has raised questions about potential legal implications, particularly concerning his recent remarks about Tesla and Elon Musk.

The governor’s comments came during a Democratic rally in Wisconsin, where instead of focusing on traditional political targets, he chose to criticize Musk and his electric vehicle company. During his animated performance, Walz celebrated Tesla’s declining stock price and made disparaging remarks about the company.

“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,” Walz bellowed. “And if you own one, we’re not blaming you. You can take dental floss and pull the Tesla thing off,” he added, gesturing something weird with his hands.

These comments have drawn scrutiny because the Minnesota state pension fund holds significant Tesla investments – approximately 1.6 million shares in its retirement portfolio and over 200,000 shares in another investment vehicle, according to December 2024 records.

The situation becomes more complex given Walz’s position as chairman of the pension system. As a fiduciary, he has legal obligations to protect pensioners’ interests. According to the pension system’s website, his role includes “primary responsibility…to monitor and evaluate the investment programs as a fiduciary with the goal of making sound investment decisions.”

Legal experts and investors suggest that actively attempting to depreciate a stock held by the pension fund could constitute a breach of fiduciary duty. As Investopedia explains: “Case law indicates that breaches of fiduciary duty most often occur when a binding fiduciary relationship is in effect and actions are taken which violate or are counterproductive to the interests of a specific beneficiary. The inappropriate actions are typically alleged to have benefitted the fiduciary’s interests or the interests of a third party rather than a principal’s or beneficiary’s interests.”

Neither Walz nor the pension fund have responded to requests for comment. Minnesota’s Attorney General Keith Ellison, who serves on the state pension board and gained recognition for prosecuting officers in the George Floyd case, has also remained silent on the matter.

Following the controversy, Walz has attempted to backtrack on his Tesla comments, describing himself as a “smartass” and a “knucklehead.” Investment expert Kevin O’Leary from “Shark Tank” commented on the situation, stating: “I believe he wasn’t thinking when he said that stuff, but it was a blatant disregard of fiduciary responsibility.”