Tesla's stock price dropped to a point that Secretary of Commerce Howard Lutnick said would "never" happen last month amid concerns about President Donald Trump's latest round of tariffs.
Newsweek reached out to Tesla and the Department of Commerce (DOC) for comment via email.
Why It Matters
Trump last week announced new tariffs on dozens of countries across the globe. He says the tariffs are aimed at closing the U.S. trade deficit and restoring domestic manufacturing, but economists have warned they will likely lead to higher priced consumer goods for Americans.
Markets reacted negatively to the news of Trump's tariffs. The Dow Jones Industrial Average tumbled about 9 percent since last Wednesday, while JP Morgan has warned there's a growing recession risk.
What to Know
Tesla's stock price is no exception, continuing to drop on Monday. Before the tariffs, Tesla's stock had already taken hit after hit over Musk's political actions as part of the Trump administration's Department of Government Efficiency (DOGE), as well as reports of vandalism against Tesla vehicles.
The value of Tesla opened at $223 per share on Monday. It fluctuated throughout the morning, rising to about $244 per share by 10:15 a.m. By 11:30 a.m., it had dropped back down to $225 per share and remained around $227 per share by noon. By 1 p.m. ET, it had leveled out at about $228 per share. At the time of publishing, it was $230.96.
It spent much of the morning at a lower value than the closing price of $235.86 on March 19, when Lutnick urged people to invest in Tesla because he believed its stock value would never be lower during a Fox News interview with Jesse Watters.
"I think, if you want to learn something on the show tonight, buy Tesla. It's unbelievable that this guy's stock is this cheap. It will never be this cheap again. When people understand the things he's building, the robots he's building, the technology he is building, people are going to be dreaming of today and Jesse Watters and thinking, 'Gosh. I should have bought Elon Musk's stock.' I mean who wouldn't invest in Elon Musk? he said.
Watters followed up and asked if he was "calling the bottom."
Lutnick responded: "Whether today's the bottom or not, I'll tell you what. Elon Musk is probably the best person to bet on that I've ever met."
Over the following weeks, Tesla's shares increased in value above the $235.86 low.
Lutnick's comment at the time raised eyebrows, with critics saying the commerce secretary should not have endorsed stock purchases of a specific company.
What People Are Saying
Epidemiologist Eric Feigl-Ding wrote on X: "How to lose your retirement in 10 days … if you listened to Trump's Commerce Secretary and bought Tesla stock."
Trump on Truth Social Monday: "The United States has a chance to do something that should have been done DECADES AGO. Don't be Weak! Don't be Stupid! Don't be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!"
Richard Branson, founder of the Virgin Group, on X: "As the dollar is weakening, U.S. consumer prices will rise. And countless small and medium-size enterprises will go, and already are going, bankrupt as a result. This is not a winning long-term strategy. The U.S. government can still turn things around, but it must act in the next few hours."
What Happens Next
Markets on Monday fluctuated. The Dow Jones Industrial Average, for instance, opened with a 3 percent drop but had rebounded a bit throughout the morning (though still remained lower than before the tariffs).
Economists previously told Newsweek that Tesla may have a few key advantages to dealing with the tariffs, including the fact that its vehicles are already manufactured in the U.S. and Musk's proximity to Trump. Musk previously said the cost of tariffs to Tesla won't be "trivial."
"To be clear, this will affect the price of parts in Tesla cars that come from other countries," Musk wrote on social media in March.
