Suffers Nine Consecutive Weeks of Decline: Trump Administration Endorses a "National-Level Stock"?

TradingKey - Tesla’s stock has now fallen for nine consecutive weeks, a decline partially attributed to Elon Musk’s political stances. The slump has prompted rare public interventions, including former U.S. President Donald Trump and current U.S. Secretary of Commerce Howard Lutnick.

Last Wednesday (March 19), Secretary Lutnick appeared on Fox News, where he openly promoted Tesla stock, urging investors to buy shares. He described Tesla’s valuation as “unbelievably cheap” and predicted it “won’t stay this inexpensive.”

Lutnick went further, praising Musk as “the most trustworthy leader,” regardless of whether Tesla stock has reached its bottom.

As of March 24, Tesla shares closed at $248.71, marking nine consecutive weeks of losses. Year-to-date, the stock has declined by 38.41%.

This appears to be the first instance of a sitting U.S. Commerce Secretary publicly endorsing a specific stock to the public — an act that, according to The Washington Post, may violate federal ethics rules prohibiting government officials from promoting individual companies or products.

Reactions on Wall Street have been mixed. Some analysts called Lutnick’s remarks “unusual” but noted that, given Tesla’s valuation and the political scrutiny Musk has faced, investor sentiment could ultimately swing in Tesla’s favor. Others warned that such intervention risks politicizing the stock further and could alienate consumers and investors opposed to Musk’s ideology.

Amid growing criticism, both Musk and Trump have taken steps to rally support for Tesla this month. Musk defended the company by emphasizing its popular, high-quality products, while urging critics not to direct hatred and violence toward him or the company. Acknowledging recent challenges, Musk highlighted Tesla’s “exciting future” and encouraged employees and shareholders to stay committed.

In mid-March, Trump purchased a Model S for $80,000 to show support for Tesla and Musk. He also condemned recent acts of vandalism against Tesla dealerships as “domestic terrorism,” warning that offenders could face up to 20 years in prison.