Howard Lutnick, the US Commerce Secretary under Trump, who indirectly holds Tesla (TSLA) stock through his investment firm, has publicly advised purchasing Tesla stocks today.
This marks what seems to be the first occasion of a sitting US Commerce Secretary endorsing a specific stock publicly.
The context of this event is particularly intriguing.
Lutnick has a significant interest and has led the investment bank Cantor Fitzgerald for years.
Beginning in 2022, Cantor Fitzgerald initiated its investment in Tesla shares, markedly increasing its stake in 2024 amid a market upturn:
Following Trump’s electoral victory last year, supported by a $250 million political contribution from Musk, the Tesla CEO began advocating for Lutnick for the key Treasury Secretary position. He tweeted:
“My view fwiw is that Bessent is a business-as-usual choice, whereas Howard Lutnick will actually enact change. Business-as-usual is driving America bankrupt, so we need change one way or another,”
Although Trump ultimately chose Bessent, Lutnick secured the role of Secretary of Commerce, aided by Musk’s endorsement.
After his nomination, Lutnick stated he would divest from his Cantor Fitzgerald assets within 90 days. That period has yet to expire, and there have been no updates regarding his divestment progress.
Today, on a Fox News segment, he urged viewers to invest in Tesla stocks:
“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,”
The timing of this stock promotion is particularly notable as Tesla’s stock has dropped over 40% in value this year.
Musk has leveraged 238 million Tesla shares, valued at over $55 billion, as loan collateral. If the stock price falls too low, he may be compelled to sell shares to manage his debts.
Additionally, Cantor Fitzgerald upgraded Tesla’s stock to a buy earlier this week, elevating their price target to $425 a share, while Tesla’s stock closed at $235.86 today.
Brandon, Howard Lutnick’s son, is the current Chairman of Cantor Fitzgerald.
Below is a brief overview of Cantor Fitzgerald’s investments in Tesla:
- Early 2022: The firm held limited shares (~8,400 in Q1 2022) but raised its stake to about 297,000 by Q3 2022 (valued at approximately $79 million). This marked a substantial increase in Tesla exposure.
- Late 2022: By the year’s end, they significantly reduced their holdings to around 72,000 shares in Q4 2022, aligning with a steep decline in Tesla’s stock price during that time.
- 2023: Throughout 2023, Cantor Fitzgerald maintained a modest position fluctuating between tens of thousands of shares, reaching a peak of ~91,000 shares by Q2 2023.
- Exiting Position in 2024: They seemed to have completely exited their Tesla investment early in 2024, as Tesla was absent in their Q1–Q2 2024 filings, suggesting they sold all shares during a price surge.
- Re-Entry in 2024: In the second half of 2024, Cantor Fitzgerald re-entered the market with roughly 1.2 million shares in Q3 2024 (valued at about $307 million at that time).
This paraphrase maintains the core information of the original article while utilizing a slightly different phrasing throughout the text and preserving its overall structure and headings.
