U.S. Commerce Secretary Howard Lutnick is facing mounting criticism from government ethics experts after openly endorsing Tesla Inc. stock during a public appearance. Speaking with reporters at the White House on Wednesday, Lutnick declared, “It will never be this cheap. Buy Tesla.”
The remarks came just a week after President Donald Trump used the White House lawn as the backdrop for what many described as a Tesla infomercial, showcasing Elon Musk’s electric vehicles.
Ethics Experts Cry Foul
Legal scholars and watchdogs argue that Lutnick’s public endorsement may have breached the U.S. Office of Government Ethics (OGE) rules. The 1989 federal ethics law explicitly prohibits government officials from using their positions for private gain or issuing endorsements.
“This is a clear-cut violation,” said Richard Painter, a former Republican White House ethics czar and prominent Trump critic. “Federal officials have no business promoting private companies, let alone encouraging people to invest in them.”
No Immediate Repercussions
Despite the controversy, no public action had been taken against Lutnick as of Friday. Unlike the 2017 Kellyanne Conway incident, where the then-presidential counselor was swiftly rebuked for telling TV viewers to “Go buy Ivanka stuff,” the current administration appears less inclined to respond.
At the time, the Office of Government Ethics demanded a probe into Conway’s conduct. The White House counsel promptly met with her to review the ethics rules, and Conway assured compliance.
However, the current landscape is different. With the OGE head dismissed by Trump and key inspector generals ousted from government agencies, the oversight mechanisms designed to hold officials accountable have been significantly weakened.
Watchdogs Call for Accountability
The Campaign Legal Center (CLC), a non-profit watchdog group, sent a letter to the government ethics office on Friday demanding an investigation into Lutnick’s comments.
Kedric Payne, CLC’s chief lawyer, warned that failing to address this infraction could set a dangerous precedent.
“This may seem like a small transgression, but if left unpunished, it will snowball into a broader problem of government officials openly promoting private interests,” Payne said.
Trump’s Business Entanglements Resurface
Lutnick’s Tesla plug also rekindles concerns over the Trump administration’s blurring of lines between public office and private business interests. During his first term, Trump faced widespread criticism for hosting foreign dignitaries at his Washington D.C. hotel, which was just steps from the White House.
He also attempted to host the G-7 summit at his struggling Doral golf resort in Florida, prompting accusations of self-dealing.
“Trump is effectively using public office as a marketing platform,” said Painter. “And now, his appointees seem emboldened to do the same.”
