Tesla shares fall after Lutnick goes on TV and recommends stock

Summary

Tesla shares fell 1.7% Thursday after Commerce Secretary Howard Lutnick urged Americans to buy the stock on Fox News, calling it "unbelievably cheap."

His comments sparked controversy as cabinet secretaries rarely endorse individual stocks.

Despite Lutnick’s endorsement, Tesla's stock is down 42% this year amid dealership protests and declining brand value.

Wedbush analyst Dan Ives labeled Tesla’s situation a “crisis,” urging Musk and the board to address mounting concerns. Cantor Fitzgerald, formerly led by Lutnick, had upgraded Tesla shortly before his remarks.