In the ever-volatile world of Wall Street, a single bold statement can echo far beyond the trading floor. Just three weeks ago, U.S. Commerce Secretary Howard Lutnick publicly championed Tesla stock, insisting it was the buy of a lifetime. Now, with Tesla’s shares plummeting to a new low, that confidence is under fire.
Tesla’s stock has taken a dramatic dive, shedding a staggering 10% in early trading this past Monday and settling at $214.80—significantly lower than the $235.86 price point when Lutnick made his bullish call on March 19. The sharp decline is part of a broader, troubling trend for the electric vehicle giant, whose shares have dropped over 40% since the start of the year.
During a Fox News interview, Lutnick praised Tesla CEO Elon Musk, calling him “probably the best person to bet on I’ve ever met.” He firmly convinced viewers: “If you want to learn something on this show tonight, it’s buy Tesla… It’s unbelievable that this guy’s stock is this cheap.” Those words haven’t aged well, especially now that the stock is even cheaper.
The nosedive in Tesla’s valuation isn’t just about the numbers. The company has been battered by public controversies surrounding Musk’s increasingly polarizing political affiliations. As a key figure in the Trump administration, Musk’s perceived alignment with extreme policies and symbolic gestures, —such as the widely criticized Election Day incident involving fascist-style salut, s—has further eroded confidence in Tesla’s brand.
Beyond the optics, there’s growing concern that Tesla is losing its competitive edge in the EV market. Once the undisputed pioneer, it now faces fierce competition from more agile and innovative players. Investors aren’t just reacting to Musk’s political entanglements—they’re questioning the company’s trajectory.
Lutnick, in his defense, claimed that the stock dip was temporary, suggesting “when people understand the things he’s building,” the company’s value will rebound. But his televised endorsement of Tesla stock, particularly given Musk’s advisory role in the administration, has sparked outrage and calls for ethical scrutiny.
David Frum, a former White House staffer under President George W. Bush, weighed in sharply: “If this cabinet secretary himself owns any of the stock he’s touting on TV, he’s probably committed a serious ethics offense.” Frum added that even if Lutnick doesn’t personally hold Tesla shares, his comments still represent “a shameful breach of trust with the audience watching.”
Meanwhile, MAGA-aligned billionaire Bill Ackman has also turned on Lutnick. In a fiery rebuke, Ackman accused the commerce secretary of profiting from national economic turmoil, saying he’s “indifferent to the stock market and economy crashing”—a direct swipe at Lutnick’s credibility and priorities.
