Tesla, the electric vehicle manufacturer, faced turbulent waters in recent weeks, especially following a public endorsement from U.S. Commerce Secretary Howard Lutnick, who shocked investors by urging Americans to buy Tesla stock on a primetime Fox News show.
During his appearance on "Jesse Watters Primetime" on March 19, 2025, Lutnick claimed that investing in Tesla was a golden opportunity, stating, "It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again." His endorsement came amid a backdrop of Tesla's stocks plummeting by over 30% the past month, further exacerbating investor concerns.
Many in the financial community found Lutnick's public endorsement troubling, as cabinet secretaries typically refrain from promoting specific stocks to avoid conflicts of interest. Lutnick, who is known to have ties to Wall Street through his previous roles, defended his position by calling protests against Musk "outrageous" and framing the Tesla CEO as the leading innovator in America. "I think if you want to learn something on this show tonight: Buy Tesla," he continued.
The fallout from Lutnick's enthusiastic urging didn’t take long to materialize, as Tesla's stock dropped even further, from $235 per share at the end of that day to $232.35 in premarket trading the next morning.
According to reports, Tesla has experienced a significant downturn, with shares down 42% since the beginning of 2025. Concerns surrounding the company heightened with the announcement that Tesla had to recall approximately 46,096 Cybertruck vehicles due to a defect that posed a risk, showcasing mounting challenges for the company.
Despite Lutnick being a supporter of Musk, critics don't hesitate to view his actions as a breach of ethical conduct, given the position he holds. Past and current political leaders have previously faced scrutiny for their stock market endorsements related to their roles in the government, creating an imbalanced advantage.
Minnesota Governor Tim Walz quipped during a recent public gathering, discussing Tesla's stock challenges, "I’ve been watching it on my phone's stock app to give me a little boost during the day." His sentiment reflects the wider political landscape, where opposition figures relish Musk’s and, therefore, the Trump administration’s struggles.
Tesla's stock valued at $479 per share last December now appears to be in a dire situation. Lutnick stated publicly, "Who wouldn’t invest in Elon Musk? You got to be kidding me," reinforcing his belief in the entrepreneur's capacity to turn things around.
However, Musk’s entanglement in the political scene has left many skeptical. Lutnick's connections to finance and his appeal for investors to buy stock is viewed as a thinly veiled conflict, given the potential for his financial interests to sway his recent comments. Just hours before Lutnick's Fox News appearance, his former firm, Cantor Fitzgerald, upgraded Tesla's stock, stirring up questions about the motivations behind his full-hearted endorsement.
Not only did Lutnick share high praise for Musk, who rescued astronauts from the International Space Station with SpaceX, he also admitted, "I wish I was allowed to buy any stock," drawing attention to his inability to do so as a government official.
The situation has become a focal point of controversy not only for Lutnick but for the entire Trump administration. President Trump had similarly endorsed Musk, expressing plans to buy a Tesla in a recent White House photo-op, showcasing his open support for the beleaguered entrepreneur.
The visibility of Lutnick’s endorsement during a time of critical stock evaluation could provoke deeper inquiries into ethical guidelines governing cabinet members. Past instances, especially when other public figures faced condemnation for similar actions, indicate a potential double standard.
This controversy exemplifies how intertwined politics and business can become in today’s shifting landscape, especially as Musk’s relationships within the government continue to face public scrutiny. As Lutnick pushes for support of Tesla amid declining value and ravenous public discontent, many wonder whether his endorsement is a genuine plea for support or a calculated move to bolster an ally during troubling times.
The picture of Lutnick and Trump vouching for Musk stands to raise questions about conflicts of interest amid the growing call for transparency in government dealings with corporations. As Tesla navigates a challenging path ahead, the scrutiny of their leadership and associated political ties will likely intensify, putting both Lutnick and Musk in the harsh spotlight of ongoing examination.
The future remains uncertain for both the entrepreneur and the stock as Tesla’s latest struggles highlight vulnerabilities in a market that once appeared bulletproof. For investors who took Lutnick’s advice, the ramifications could loom large as the market reacts to political circumstances and financial realities.
The recent drop in Tesla's stock reflects broader concerns about Musk’s role in the current government and the impact of his public persona on his business. As Lutnick embarked on his unusual promotion of Tesla stock, investors remain cautious amidst the uncertainty of the future.
In a political climate where business endorsements from cabinet members could become explosive, Lutnick’s case exemplifies a potential growing trend that combines elements of governance with entrepreneurial dynamics. Keeping an eye on how this unfolds could reveal the delicate balance (or lack thereof) between investment opinions and political authority.
