Tesla shares have plummeted to their lowest point in months, contradicting Commerce Secretary Howard Lutnick’s recent claim that the stock would “never” be this cheap again.

• Tesla stock is down over 40% in 2025, falling to $214.80 after a high-profile endorsement.
• Howard Lutnick, a Trump administration official, encouraged investors to buy Tesla in March.
• Elon Musk’s leadership and political involvement continue to weigh heavily on Tesla’s public image.
• Ethical concerns mount over government officials promoting private sector investments.

Tesla Stock Dips Below $215 After Lutnick’s Public Endorsement

Just three weeks after Commerce Secretary Howard Lutnick encouraged Americans to invest in Tesla, the electric vehicle giant’s stock has dropped over 10%, closing at $214.80 on Monday—down from $235.86 when Lutnick made his bullish prediction.

In a March 19 appearance on Fox News, Lutnick praised Tesla CEO Elon Musk, calling him “probably the best person to bet on I’ve ever met.” He went further, telling viewers: “If you want to learn something tonight, it’s buy Tesla.”

Over 40% Drop in 2025 Alone Raises Investor Concerns

Tesla’s stock has fallen more than 40% year-to-date, reflecting growing investor concerns about the company’s strategic direction, competition in the electric vehicle (EV) market, and Elon Musk’s increasingly controversial public image.

• EV Market Share: Tesla is losing ground to emerging competitors.
• Leadership Scrutiny: Musk’s dual role as Tesla CEO and Trump administration advisor has raised red flags.
• Public Image: Musk has sparked backlash over inflammatory behavior and partisan affiliations.

Ethics Questions Surround Cabinet Official’s Stock Endorsement

Lutnick’s endorsement of Tesla stock has also triggered widespread criticism from ethics watchdogs and political analysts. It is highly unusual—and potentially unethical—for a sitting Cabinet secretary to promote individual stocks, especially one tied to another government official.

Journalist and former White House aide David Frum commented on the controversy, stating:

“If this cabinet secretary himself owns any of the stock he’s touting on TV, he’s probably committed a serious ethics offense.”

Frum added that even if Lutnick does not own Tesla stock, his public recommendation may represent “a shameful breach of trust” with the American public.

Billionaire Bill Ackman Calls Out Lutnick’s Economic Influence

Investor Bill Ackman, known for his high-profile financial positions and pro-business stance, criticized Lutnick over the weekend. In a scathing post, Ackman accused the commerce secretary of profiting from economic turmoil and showing indifference toward market volatility that harms everyday Americans.

“He profits when our economy implodes,” Ackman wrote, accusing Lutnick of being out of touch with real-world consequences.