In an unprecedented move, U.S. Commerce Secretary Howard Lutnick publicly recommended buying Tesla (TSLA) stock, marking what may be the first time a sitting Commerce Secretary has openly endorsed a specific stock. The timing and circumstances surrounding this call have sent shockwaves through Wall Street and political circles.
Howard Lutnick’s Tesla Endorsement: A First in U.S. Politics?
Appearing on Fox News, Lutnick made a strong case for Tesla’s undervaluation, urging viewers to invest:
“I think if you want to learn something on this show tonight, buy Tesla. It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again.”
Lutnick’s remarks come at a crucial time for Tesla, which has seen its stock price plummet by over 40% year-to-date. His comments are particularly noteworthy given his deep financial ties to Cantor Fitzgerald, a major Tesla shareholder.
Tesla’s Stock Drop and Musk’s Collateral Risks
Tesla CEO Elon Musk has pledged 238 million Tesla shares, worth over $55 billion, as collateral for personal loans. A continued stock price decline could trigger forced sales of Musk’s holdings, putting pressure on Tesla’s financial stability.
Meanwhile, Cantor Fitzgerald, now led by Lutnick’s son Brandon, recently upgraded Tesla to a “buy” rating, setting a bullish $425 price target—a striking contrast to its current price of $235.86.
Cantor Fitzgerald’s Tesla Trading History: A Timeline
Cantor Fitzgerald has actively traded Tesla shares over the years, with major moves in 2024:
- 2022: Started with a small stake (~8,400 shares), surged to 297,000 shares in Q3, then cut back to 72,000 shares by year-end.
- 2023: Held a modest position, fluctuating between 44,000–91,000 shares quarterly.
- Early 2024: Exited Tesla completely before re-entering in Q3 with 1.2 million shares (~$307 million).
- End of 2024: Trimmed position to ~740,000 shares, likely locking in profits.
Cantor’s re-entry aligns with Tesla’s mid-2024 stock pullback, suggesting the firm bought the dip and took profits later in the year.
Musk’s Political Influence and Lutnick’s Appointment
Tesla’s relationship with the Trump administration has fueled further scrutiny.
- Musk donated $250 million to Trump’s 2024 campaign and publicly pushed for Lutnick to be Treasury Secretary.
- Though Trump selected Bessent for Treasury, Lutnick secured the Commerce Secretary role, with Musk’s backing.
- After his nomination, Lutnick pledged to divest from Cantor Fitzgerald within 90 days, but there’s no confirmation that he has done so yet.
A Stock Pump or Justified Optimism?
Lutnick’s Tesla endorsement—combined with Cantor Fitzgerald’s recent bullish rating and heavy Tesla holdings—raises serious questions about potential conflicts of interest. Whether this is genuine investment insight or market influence, Tesla’s stock is now under the spotlight like never before.
