Tesla Stock Plummets Below Lutnick’s Bold Forecast

Tesla’s stock price has tumbled below a threshold once touted as a bargain by Commerce Secretary Howard Lutnick, raising fresh doubts about the electric vehicle giant’s trajectory amid economic turbulence. The decline, erasing gains made earlier this year, has stunned investors who heeded Lutnick’s March prediction on Fox News that Tesla shares, then at $235.86, would “never be this cheap again,” spotlighting the unpredictability of markets under current trade policies.

On Monday, Tesla shares dropped as low as $217.41 in New York trading, a stark 9.2% plunge. This fall reflects broader market unease, compounded by Tesla’s reported sales struggles and Elon Musk’s deepening role in the Trump administration.

Lutnick’s optimistic call came during a period of relative stability for Tesla, before Trump’s tariff plans escalated. Now, with shares down over 50% from their December peak, analysts question whether his forecast misjudged the company’s vulnerabilities.

Tesla’s woes are partly tied to declining consumer demand, with sales figures reportedly softening in key markets like China. The company also faces brand backlash linked to Musk’s political involvement, further denting investor confidence.

Musk, who leads the Department of Government Efficiency, has urged Tesla employees to hold firm on their stock holdings. Yet, his divided focus between corporate leadership and White House duties has fueled concerns over strategic direction.

Wall Street analysts, once bullish, are revising forecasts downward, with Wedbush cutting its price target to $315. This shift underscores Tesla’s exposure to global supply chain disruptions triggered by new U.S. trade barriers.

The stock’s slide coincides with a brutal sell-off across U.S. markets, driven by fears of Trump’s tariff fallout. Investors who bought in after Lutnick’s endorsement now face steep losses, amplifying scrutiny of his economic influence.

Tesla’s reliance on imported parts, especially from China, makes it vulnerable to the 34% tariffs imposed last week. These costs could squeeze margins, a risk Chief Financial Officer Vaibhav Taneja flagged recently.

Critics argue Lutnick’s public boosterism, a potential ethics violation, reflects a troubling coziness between the administration and Musk’s empire. Democrats have called for probes into whether such statements benefit Musk personally.

Despite the gloom, some retail investors remain defiant, reportedly piling into Tesla at a record pace. This loyalty, however, clashes with the stock’s relentless downward spiral, testing their resolve.

Musk has touted Tesla’s future in robotics and autonomous driving as a lifeline, but skeptics see these as distant promises. For now, the company’s core electric vehicle business remains under intense pressure.

As Tesla navigates this storm, its stock’s breach of Lutnick’s benchmark symbolizes broader market chaos. Whether it rebounds or sinks further may hinge on Trump’s next trade moves and Musk’s ability to refocus.