Tesla Shares Sink Below Level US Commerce Secretary Claimed ‘Would Never’ Happen
TEHRAN (Tasnim) – Tesla’s stock fell sharply on Monday, dipping below the price point US Commerce Secretary Howard Lutnick recently told Americans would “never” be seen again.
Shares of Elon Musk’s electric vehicle company dropped by 10% in early trading, hitting $214.80.
The decline came just three weeks after Lutnick advised viewers on Fox News to buy Tesla stock, which was then priced at $235.86.
Speaking on March 19, Lutnick called Musk “probably the best person to bet on I’ve ever met.”
“I think if you want to learn something on this show tonight, it’s buy Tesla,” Lutnick said during an interview with host Jesse Watters.
He described Tesla’s valuation as a rare opportunity, saying, “It’s unbelievable that this guy’s stock is this cheap.”
Tesla shares have fallen more than 40% since the start of the year.
The decline follows investor concerns about Musk’s involvement in the Trump administration and fears that the company is losing its lead in the electric vehicle market.
Musk’s recent public behavior has also drawn scrutiny.
The Tesla CEO was seen making gestures resembling fascist salutes on Election Day and leads the administration’s DOGE task force, which has been accused of pressuring government agencies to dismiss employees.
Lutnick suggested during his Fox News appearance that the drop in Tesla’s stock was temporary.
“When people understand the things he’s building,” he said, “the value will rocket again.”
It is rare for a sitting Cabinet secretary to endorse individual stocks publicly—particularly when the company is headed by a White House adviser.
The remarks have sparked concerns about potential ethics violations.
“If this cabinet secretary himself owns any of the stock he’s touting on TV, he’s probably committed a serious ethics offense,” wrote David Frum, a journalist and former George W. Bush aide, in a social media post.
“If he doesn’t own the stock himself, then he probably hasn’t broken any laws, but is engaged in a shameful breach of trust with the audience watching.”
The controversy escalated on Sunday when billionaire hedge fund manager Bill Ackman criticized Lutnick, claiming the secretary “profits when our economy implodes.”
Ackman accused Lutnick of being “indifferent” to the turmoil affecting both the stock market and ordinary Americans.
