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Commerce Secretary Howard Lutnick hawks Tesla stock on TV: 'It'll never be this cheap again'

Commerce Secretary Howard Lutnick hawks Tesla stock on TV: 'It'll never be this cheap again'

  • 20.03.2025 04:09
  • businessinsider.com
  • Keywords: danger, danger

Commerce Secretary Howard Lutnick recommends buying Tesla stock now, calling it "unbelievably cheap" and unlikely to drop further. He emphasizes Elon Musk's innovative projects despite the stock's significant decline from its record highs.

Tesla NewsTSLAsentiment_dissatisfied

Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

The stock price has fallen by more than 50% from its record highs in mid-December.

Cantor Fitzgerald

Positivesentiment_satisfied
Analyst rating: N/A

Lutnick was the chairman and CEO of Cantor Fitzgerald, which owns Tesla shares.

Context

Analysis of Business Insights and Market Implications

Key Facts and Data Points:

  • Commerce Secretary Howard Lutnick endorsed Tesla stock during a TV interview, calling it "unbelievable" how cheap it is and predicting it won't be this low again.
  • Tesla shares have fallen by over 50% from their record highs in mid-December (from $479 to ~$235).
  • Lutnick previously served as chairman and CEO of Cantor Fitzgerald, which owns Tesla shares. He agreed to divest his business interests upon becoming Commerce Secretary.
  • Elon Musk has been a vocal advocate for Lutnick, praising him over Trump's eventual choice for Treasury Secretary.
  • Tesla is facing controversies related to Musk's work with Twitter/X and protests against the company.

Market Trends and Business Impact:

  • The sharp decline in Tesla stock prices reflects investor concerns about short-term volatility and long-term growth prospects.
  • Lutnick's public endorsement could influence investor sentiment, potentially stabilizing or increasing demand for Tesla shares.
  • Musk's focus on robotics, AI, and future technologies positions Tesla as a forward-looking company, but execution risks remain a concern.

Competitive Dynamics:

  • Tesla faces competition from traditional automakers and new entrants in the EV market.
  • The company's ability to navigate regulatory challenges, supply chain issues, and public perception will determine its long-term success.

Strategic Considerations:

  • Lutnick's comments highlight the potential political and regulatory impact on Tesla's business. A Musk-friendly administration could lead to favorable policies for the EV industry.
  • The ongoing protests against Tesla dealerships signal growing opposition to the company's business practices, which could harm its brand reputation.

Long-Term Effects and Regulatory Implications:

  • If Musk were to run for office, his influence on policy-making could shape the future of technology regulation and energy policies.
  • The broader support from influential figures like Trump underscores the potential for government intervention in tech and automotive industries.

Conclusion:

Lutnick's endorsement of Tesla stock reflects both investor uncertainty and the company's strategic importance in the EV and AI sectors. While his comments could boost short-term sentiment, Tesla's long-term success will depend on its ability to navigate market challenges, regulatory scrutiny, and competitive pressures.