Tesla’s shares have dropped 10% in early trading, reaching $214.80, just three weeks after Commerce Secretary Howard Lutnick urged Americans to buy the company due to its “unbelievable” cheapness.
Lutnick made his remarks during an interview with Fox News on March 19, calling Elon Musk “probably the best person to bet on” and saying that investors should put their money in Tesla. However, Musk’s multiple public gaffes and role in the Trump administration have led to concerns about the company’s value.
Tesla’s shares have plummeted over 40% since the beginning of the year, largely due to concerns that it is losing ground to competitors in the electric vehicle market. Lutnick’s endorsement has been met with skepticism, with commentators pointing out that it is unusual for a Cabinet secretary to recommend individual stocks, especially when the company is run by a White House advisor.
Some have raised ethics concerns, suggesting that Lutnick may have committed a serious offense if he owns any of the stock he is touting. Others argue that even if he doesn’t own the stock, his recommendation constitutes a breach of trust with viewers. The situation has been further complicated by MAGA billionaire Bill Ackman’s criticism of Lutnick, accusing him of profiting from an economic collapse.
As the company continues to face challenges, investors are left wondering whether Lutnick’s endorsement was merely a publicity stunt or a genuine attempt to promote Tesla’s value.
Source: https://finance.yahoo.com/news/tesla-plummeting-stock-just-hit-135745232.html