Tesla Inc. shares fell below a price Commerce Secretary Howard Lutnick predicted they would never fall to on Monday, Bloomberg reported.
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Lutnik's Statement
During an interview with Fox News on March 19, when Tesla stock closed at $235.86 per share, Lutnick said viewers should buy the company's stock, noting that “it will never be that cheap again.”
The next day, CEO Elon Musk told Tesla employees they should hold on to their shares.
Stocks Fall
Tesla shares were down 9.2% at $217.41 a share as of 9:41 a.m. April 7 in New York amid a broader selloff in global stock markets.
Tesla shares have fallen 55% from their record high reached in mid-December, when Trump won the US presidential election.
Several analysts have cut their sales and profit estimates for Tesla in recent weeks, even before the company reported weak vehicle deliveries. And while Tesla is seen as relatively insulated from Trump's announced 25% tariffs on imported cars, Musk has warned that the company will not be unscathed.
“The tariffs in their current form will undermine Tesla, the overall supply chain and its global presence, which has been a distinct advantage over growing competitors like BYD for years,” Wedbush’s Ives said in a note to clients on Sunday.
The biggest concern, Ives said, is Tesla's position in China.
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