HomeNewsElon Musk Slams United Auto Workers Over Embezzlement Scandal

Elon Musk Slams United Auto Workers Over Embezzlement Scandal

by Joe Rutland
(Photo by Christian Marquardt - Pool/Getty Images)

Elon Musk and the United Auto Workers are at odds and it’s the Tesla CEO who is slamming the organization. Musk’s target is the UAW over embezzlement charges against one of its former officials. And it’s about Timothy Edmunds, who is UAW Local 412’s former secretary-treasurer. Elon Musk is keeping the United Auto Workers in his focus. Especially after Edmonds pleaded guilty in federal court last week to embezzling $2.2 million in union money. 

What To Know

  • Tesla CEO Elon Musk has some pointed words for the United Auto Workers.
  • His latest slam is toward the UAW about embezzlement charges against a former official.
  • Musk is targeting Timothy Edmunds, who is in deep trouble.

Elon Musk Comes Out Swinging Against United Auto Workers

When Elon Musk heard the news about the United Auto Workers, he came out swinging. The Tesla CEO quips, “Fighting for the right to embezzle money from autoworkers.” He tosses in that the UAW stole millions from workers. Musk said Tesla has made many of its own employees millionaires through stock grants. “Subtle, but important difference,” he said.

Federal prosecutors say that Edmunds, right now, is the 17th defendant convicted in an ongoing criminal investigation. It is into corruption within the UAW. From 2011 to 2021, Edmunds was secretary-treasurer of UAW Local 412. It represents about 2,600 people who work for Stellantis at factories in the Detroit area.

Edmunds “systematically drained” the local union’s bank accounts of about $2.2 million by using the labor group’s credit cards. He found a lot of personal use purchases to make, too. Edmunds would cash local checks and transfer money into his accounts, according to the criminal case, the U.S. attorney’s office said.

Prosecutors Say Edmonds Gambled Money Away, Bought Guns, Cars

Prosecutors said he gambled with the money and spent more on guns, cars, and child-support payments. He was charged in a November indictment. The UAW told FOX Business an internal audit ultimately discovered Edmunds’ improper expenditures which they then turned over to federal authorities. 

Elon Musk and the United Auto Workers have been at odds before. He has exhibited a cool reception towards it and unions over the years. In 2018 he tweeted that stock options for employees would be off the table if Tesla employees unionized. An administrative law judge ruled in 2019 that the tweet violated labor laws. Tesla appealed the ruling. 

Earlier this month, Musk invited the UAW to hold a vote at Tesla after President Biden declined to mention the company during his State of the Union Address. The president touted Ford and GM’s investments in electric vehicles, prompting Musk to tweet that Tesla “has created over 50,000 US jobs” and is “investing more than double GM + Ford combined.”