Tesla Stock Dips Despite Commerce Secretary’s Buy Recommendation Amid Growing Crisis

Tesla shares declined in early trading on Thursday, March 20, 2025, following a public endorsement from U.S. Commerce Secretary Howard Lutnick, who urged Americans to purchase stock in Elon Musk’s electric vehicle company during a Fox News appearance the previous evening. Speaking on "Jesse Watters Primetime," 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,” adding, “I mean, who wouldn’t invest in Elon Musk? You gotta be kidding me.” Despite the push, Tesla’s stock fell approximately 1.7% in premarket trading to $231.75, reflecting a broader downward trend—down 5% over five days, 35% in the past month, and 42% year-to-date.

The recommendation, unusual for a cabinet secretary, coincided with a tumultuous period for Tesla. Hours earlier, Cantor Fitzgerald—the investment bank Lutnick once led, now run by his sons—upgraded Tesla’s stock rating, adding a layer of intrigue given Lutnick’s prior Wall Street ties. Meanwhile, Wedbush Securities analyst Dan Ives, a long-time Tesla supporter, labeled the company’s situation a “crisis” in a Wednesday night note, writing, “Tesla is going through a crisis and there is one person who can fix it....Musk,” and pressing Musk and the board to address the escalating issues.

Lutnick’s comments align with a apparent Trump administration effort to bolster Tesla amid public backlash. On March 13, President Donald Trump showcased Tesla vehicles on the White House lawn, signaling support as the company faces “Tesla Takedown” rallies nationwide. Late Thursday, Trump posted on Truth Social, “People that get caught sabotaging Teslas will stand a very good chance of going to jail for up to twenty years, and that includes the funders. WE ARE LOOKING FOR YOU!!!” Administration officials have vowed to probe these protests as potential domestic terrorism. However, Tesla’s challenges persist, with JPMorgan analyst Ryan Brinkman noting last week, “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.”

**Links and References:**

- Original article: [Axios - Tesla falls after Commerce secretary recommends buying stock](https://www.axios.com/2025/03/20/tesla-stock-fall-commerce-secretary-howard-lutnick-elon-musk)