Tesla shares declined on Thursday despite an unexpected endorsement from US Commerce Secretary Howard Lutnick, who urged Americans to buy stock in the company during a televised interview.
The unusual recommendation came amid growing concerns about Tesla’s financial outlook and broader market challenges.
During an appearance on Fox News, Lutnick described Tesla’s current stock price as a bargain.
“It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again,” he said, referring to Tesla CEO Elon Musk.
He added that those who invest in Musk’s ventures today would likely look back with regret if they missed the opportunity.
Lutnick’s endorsement was notable given that cabinet officials rarely make recommendations on individual stocks, especially those associated with figures closely tied to the administration. His comments also came just hours after Cantor Fitzgerald—an investment firm previously led by Lutnick and now managed by his sons—upgraded Tesla’s stock rating.
Despite Lutnick’s remarks, Tesla shares fell approximately 1.7% in premarket trading Thursday, settling at $231.75. The stock has faced significant pressure in recent weeks, dropping 5% over the past five days, 35% over the last month, and 42% since the beginning of the year.
Analysts have expressed concern over the rapid decline in Tesla’s market value.
“We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” JPMorgan analyst Ryan Brinkman noted in a recent research report.
While Lutnick and other officials have expressed confidence in Tesla, some of the company’s biggest supporters on Wall Street are now voicing concerns. Dan Ives, a long-time Tesla bull from Wedbush Securities, warned that the company is in a “crisis” and urged Musk and Tesla’s board to take action.
“Lets call it like it is: Tesla is going through a crisis and there is one person who can fix it… Musk,” Ives wrote in a note to investors.
He called for Tesla leadership to step in and address mounting challenges.
Lutnick’s comments come as the Biden administration and the Trump campaign have both sought to align themselves with Tesla and Musk. Former President Donald Trump recently showcased Tesla vehicles at the White House, even purchasing a Model S as a public display of support. Meanwhile, protests targeting Tesla showrooms have intensified across the country, prompting administration officials to pledge investigations into alleged vandalism.
Musk has blamed political opposition for the backlash against his company.
“It’s really come as quite a shock to me that there is this level of, really, hatred and violence from the left,” Musk said during an interview earlier this week.
Axios and Business Insider contributed to this report.
