Tesla (TSLA, Financial) just got a surprising vote of confidence from Commerce Secretary Howard Lutnick, who called the stock “unbelievably cheap” during a Fox News interview. With shares down more than 50% from their December highs, Lutnick suggested investors might look back at today's prices and wish they had bought in. His endorsement comes as Tesla battles declining sales and political turbulence tied to Elon Musk's expanding role in the Trump administration. Meanwhile, former President Trump doubled down on his support last week by purchasing a Tesla Model S and displaying multiple Tesla vehicles on the White House lawn.
But it's not just market forces at play—Tesla is caught in a storm of public backlash, with protestors targeting showrooms and even vandalizing vehicles. Musk, now a key player in Trump's newly formed Department of Government Efficiency, dismissed the uproar as politically driven, while Lutnick defended him as the “best technologist” and “best entrepreneur” in America. Investors, however, remain cautious. The stock's slide reflects concerns about demand, competitive pressures, and the reputational risks tied to Musk's growing political ties. Lutnick's endorsement is notable given his background as chairman of Cantor Fitzgerald, though he has agreed to step away from those business interests.
So, is this the bottom for Tesla or just another stop on the way down? Lutnick's rare endorsement, coupled with Trump's public backing, adds a fresh twist to the narrative. But investors still need to weigh whether Tesla's fundamentals can weather the storm—or if the external pressures will keep the stock under pressure.
