In a groundbreaking and controversial move, Howard Lutnick, the U.S. Commerce Secretary under President Trump, has publicly recommended purchasing Tesla stocks, a significant moment in political finance. While Lutnick's relationship with the company stems from his firm, Cantor Fitzgerald, which has invested heavily in Tesla over the years, this endorsement marks a rare instance of a sitting Cabinet member endorsing a specific stock recommendation.
On March 19, 2025, during an appearance on Fox News, Lutnick stated, "I think if you want to learn something on this show tonight, buy Tesla. It's unbelievable that this guy's stock is this cheap. It'll never be this cheap again." His comments come amidst a backdrop of Tesla's significant stock slide, which has seen more than a 40% drop in value since the beginning of the year.
The connection between Lutnick and Tesla deepens when considering Cantor Fitzgerald's strategic buys of Tesla stocks. According to reports, Cantor Fitzgerald first purchased a modest amount of Tesla shares—approximately 8,400—in early 2022, before exponentially increasing their holdings to around 297,000 shares by the third quarter of that year. Yet, by Q4 2022, their stake was cut back significantly to about 72,000 shares. This pattern continued in 2023 as they held fluctuating but generally low numbers of shares before completely exiting their investment in early 2024.
Subsequently, late 2024 saw a dramatic resurgence of their interest, ramping their holdings back up to approximately 1.2 million shares, signaling a bullish view on the company as it dealt with the vicissitudes of the market. With Tesla recently facing financial turmoil exacerbated by its perceived close ties to the Trump administration and the political turmoil surrounding Musk's personal life, the company's stock resonated weakly. It closed at $235.86 on March 19, 2025, far from the price targets being thrown around by investment analysts who had recently upgraded Tesla's stock to a buy with a $425 price target.
In the shadow of Lutnick's recommendation, Tesla itself faces a barrage of challenges beyond just stock evaluation. Concurrently, Tesla dealerships have been experiencing serious vandalism as part of a wave of protests, dubbed the #TeslaTakedown, led by critics of Elon Musk, particularly regarding his support for Trump. The situation escalated to such a degree that Attorney General Pam Bondi labeled the recent spate of vandalism as "domestic terrorism." This characterization has been met with skepticism and controversy, especially considering Trump's own previous pardons for those involved in the January 6 Capitol riots.
The backlash against Tesla, fueled by Musk's polarizing politics, saw Tesla's sales decrease by 5.6% last year, marking the first sales decline in the company's history. The environmentalist customer base that initially propelled Tesla to success has begun to rethink their support amid perceptions that Musk's political ambitions complicate their values.
As protests have sparked widespread attention, it has created a complex dynamic where Tesla owners feel alienated—not just politically but socially, as protests against vehicles and even property damage emerge across states. Senator Mark Kelly echoed this sentiment by announcing he had sold his Tesla and switched to a Chevrolet Tahoe, reflecting the growing rift between customers and the brand driven by its CEO's political entanglements.
While Lutnick recommends an investment that some analysts might see as opportunistic, wary shareholders and Tesla owners aren't quite sure whether to take solace in his endorsement or perceive it as a desperate pitch from a politically entwined figure. Trump's ties to Musk are particularly evident considering Musk's substantial $250 million donation to Trump's campaign and the connections made between the executives of Tesla and the administration.
Vandalism incidents are reportedly being investigated, with sharp responses from Trump and Bondi. Members of Trump's administration have threateningly defined the protests as acts of domestic terrorism, with penalties that suggest severe repercussions for all involved. Gunfire and arson have exacerbated fears, making many question whether the federal government may use stringent means to suppress any anti-Musk demonstrations.
The narrative surrounding Tesla contains layers of financial gambits, political affiliations, and a growing public backlash that reflects broader societal concerns surrounding corporate influence in government and vice-versa. Whether Lutnick's recommendation proves prescient or not, it arrives at a time of pronounced instability for Tesla, making their future uncertain.
Markets react differently under public scrutiny, and Lutnick's comments highlight the morally grey areas in which political and corporate interests intersect, raising larger questions about the implications of such intertwined relationships. With the way things are unfolding, Tesla's supporters and investors are left pondering whether healing and recovery are possible amidst the current landscape.
The tumultuous waves in Tesla's existence vividly embody the tensions between corporate ambitions and the political realities that threaten both to damage its public perception and potential rebound in the market.
