US Commerce Secretary Howard Lutnick, who indirectly owns Tesla stocks through his firm Cantor Fitzgerald, has publicly recommended buying Tesla shares today. This is a rare instance of a sitting US Commerce Secretary endorsing a specific stock.
Lutnick’s recommendation comes after Cantor Fitzgerald significantly increased its investment in Tesla in 2024, during a bull run. The move suggests active trading around Tesla’s short-term moves and raises questions about the firm’s motives.
Tesla’s stock has lost over 40% of its value so far this year, with Elon Musk using his shares as collateral for personal loans. Analysts have upgraded Tesla’s stock to a buy, but the company is facing challenges such as scaling up Robotaxi hailing and high overhead costs.
Lutnick’s son is now in charge of Cantor Fitzgerald, which holds a large stake in Tesla. The firm has fluctuated its position in recent years, with some analysts questioning its motives. Elon Musk has a relationship with Lutnick, which has raised concerns about potential conflicts of interest.
The recommendation by Lutnick is seen as “despicable” and “insane” by some, who argue that it is unethical for a US official to promote a specific stock. Tesla’s struggles are evident in its reliance on using US officials to promote its stocks.
Source: https://electrek.co/2025/03/19/trump-us-commerce-secretary-owns-tesla-recommends-buy-tsla-stocks