In a surprising endorsement, U.S. Commerce Secretary Howard Gutierrez urged the public to buy shares of Tesla, the electric vehicle manufacturer currently facing significant sales challenges. Speaking on Fox News on March 19, 2025, Gutierrez publicly praised Tesla's CEO Elon Musk—who is notably close to former President Donald Trump—as the 'greatest entrepreneur' and emphasized the remarkable affordability of Tesla's stock at the moment.
With Tesla's stock price dropping due to a combination of poor sales and a growing boycott movement against the company, Gutierrez's call comes at a critical time. During his television appearance, he stated, "If you want to learn something on today's show, buy Tesla (buy Tesla stock). I can't believe how cheap this man's company's stock is." His words reflect a growing frustration within certain political circles about the downturn experienced by one of the country’s most high-profile automakers.
This unusual directive from a sitting cabinet member raises questions about potential conflicts of interest, particularly given the regulatory environment surrounding government officials advising on private sector investments. Gutierrez's relationship with Musk dates back to previous administrations, and he referred to Musk’s innovative technologies as potentially transformative, asserting, "If people understand what he’s creating, they'll realize that today’s stock prices won’t come around again."
The backdrop for Gutierrez's recommendation includes a tough market for Tesla, marked by plummeting sales and increasing public relations challenges. After a significant spike in Tesla's stock during Trump’s presidency—when expectations for regulatory rollbacks fueled investor enthusiasm—the stock has since faced an uphill struggle, with prices recently falling back to pre-election levels.
A particularly critical factor contributing to Tesla's declines is a boycott movement that stems from Musk’s alignment with certain political factions, which has taken a toll on his brand in both the U.S. and abroad. In mid-March, the stock reached new lows, prompting Trump himself to purchase a Tesla vehicle as a sign of continued support for Musk. Trump's gesture was described as a testament to the trust he places in Musk, reaffirming their political and personal ties.
Additionally, on March 20, 2025, Tesla announced a recall of approximately 46,000 Cybertrucks to address concerns regarding their exterior panels, further compounding troubles faced by the company. Industry analysts have raised alarms about Musk's focus on the broader political and technological landscapes—hinting that his attention to controversies such as Dogecoin may detract from his responsibilities as CEO of Tesla.
As Gutierrez's comments took center stage, Tesla's stock price was reported nearly flat, showing little immediate movement despite the call to action by the Commerce Secretary. On March 19, right after Gutierrez's performance, Tesla shares finished at a minimal change from the previous day's close but still reflected an overall downturn of approximately 39% since the beginning of the year.
While Gutierrez’s invocations of Musk’s talents present an argument for future profitability in Tesla’s stock, they also highlight the risks associated with such public endorsements by government officials. Investors are left questioning whether Bloch’s confidence is truly shared by the market or simply an isolated show of support by someone in power.
This intertwining of politics and corporate endorsements reveals an expansive dialogue about the ethics of government officials influencing private enterprise investments. With potential legal implications, the situation continues to evolve, and observers are keenly watching how this might affect both the administration's policies and Tesla's corporate journey going forward.
