Absolutely the teacher is overstepping their boundaries. Bullying is not permitted at school...I believe there is zero tolerance, even by a teacher. Stop it immediately. Tell the teacher, tell the principal and tell the Board of Ed. The teacher needs that added to their file so they can be retrained.
Teachers need to know that children are an extension of their parents. Would a teacher talk to a parent like that? I dont think so.
Hug your child and tell them not to tolerate abuse from anyone, including adults and teachers. That next time, your child can request to call you immediately for your support input etc.