Donald Trump’s commerce secretary told Americans to buy stock in Elon Musk’s electric car company, only for shares in Tesla to keep falling.
“I think, if you want to learn something on this show tonight, buy Tesla,” Howard Lutnick told Fox News on Wednesday. “It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again.”
He added: “I mean, who wouldn’t invest in Elon Musk? You gotta be kidding me.”
Regarding Tesla at least, the answer appears to be: lots of people. In the last month, shares have lost a third of their value. After Lutnick spoke, Tesla was down again in pre-market trading on Thursday.
Musk donated hundreds of millions of dollars to Trump’s re-election campaign and is now slashing government staffing and budgets under the so-called “department of government efficiency” (Doge) – work proving increasingly unpopular and damaging to his businesses. Amid protests that have included vandalism of Teslas and dealerships, Musk has claimed to have done nothing wrong.
On Tuesday, he told Fox: “It turns out when you take away the money people get fraudulently, they get very upset. They basically want to kill me because I’m stopping their fraud, and they want to hurt Tesla because we are stopping this terrible waste and corruption in the government. I guess they are bad people. Bad people do bad things.”
Republicans have attacked Democrats for speaking out against Tesla. Observers have pointed out how the same Republicans have attacked companies for promoting values they do not share, celebrating financial reverses.
Tesla’s problems continue to grow. Last week, JP Morgan said: “We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly.”
This week, Dan Ives, managing director at Wedbush and a major Tesla backer, said brand damage caused by Musk’s work for Trump “has spread globally over the last few weeks into what we would characterize as a brand tornado crisis moment”.
Lutnick spoke to Jesse Watters, a Fox primetime host and Trump cheerleader.
“It’s just so outrageous,” the former Cantor Fitzgerald CEO said. “You have probably the best entrepreneur, the best technologist, the best leader of any set of companies in America working for America, and you have this sort of weird side of the Democratic party attacking him.”
Lutnick repeated the claim that Musk “rescued” astronauts from the International Space Station via his SpaceX company on Wednesday – yet in fact, Nasa chose to wait for SpaceX to be ready for the mission.
Lutnick urged viewers to “buy Tesla” and expressed disbelief about the shares’ performance.
He continued: “When people understand the things he’s building, the robots he’s building, the technology he’s building, people are going to be dreaming of today and Jesse Watters, thinking, ‘Gosh, I should have bought Elon Musk’s stock’ … Whether today’s the bottom or not, I tell you what, Elon Musk is probably the best person to bet on I’ve ever met. And I think we all know that.”
Lutnick and Watters then engaged in cheerful promotion of $30,000 robots for domestic chores that the commerce secretary said Musk would soon bring to market.
Concern is growing about conflicts of interest involving Musk and whether he is profiting from his government work. This week, as Musk’s Starlink internet service was installed at the White House, senior Democrats called for investigations.
Lutnick told Fox: “Elon Musk is the best entrepreneur and technologist in America, and I bet on him. I wish I was allowed [to buy Tesla stock]. I’m not allowed to buy any stock.”
