Tesla’s stock fell further early Thursday after Commerce Secretary Howard Lutnick appeared on TV and encouraged Americans to buy shares in Elon Musk’s company.
Cabinet secretaries don’t typically recommend individual stocks, especially when they’re tied to the president’s closest advisers. But Lutnick made his suggestion on Fox News Wednesday night, saying, “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.” He added: “I mean, who wouldn’t invest in Elon Musk? You gotta be kidding me.”
Despite Lutnick’s pitch, Tesla’s stock fell about 1.7% in premarket trading Thursday, dropping to $231.75.
The stock has been struggling. It’s down 5% in the past week, 35% over the last month, and 42% so far this year.
Lutnick’s comments are part of a larger effort by the Trump administration to defend Tesla. Last week, President Trump even hosted an event at the White House showcasing Tesla cars.
At the same time, Tesla has faced growing criticism, with protests at dealerships nationwide. Top officials have pledged to investigate these protests as potential acts of domestic terrorism.
Lutnick’s recommendation came as one of Wall Street’s biggest Tesla supporters raised concerns about the company’s future.
Dan Ives, an analyst at Wedbush Securities, wrote in a research note Wednesday night, “Let’s call it like it is: Tesla is going through a crisis, and there is one person who can fix it… Musk.”
Ives, a long-time believer in Tesla’s growth, urged Musk and the board to take action and address the challenges facing the company.
