In a move drawing sharp criticism from ethics watchdogs and lawmakers, Commerce Secretary Howard Lutnick sparked controversy by urging Americans to buy Tesla stock during a Fox News appearance. The remarks, viewed as a blatant ethics violation, have added to concerns over the Trump administration’s cozy relationship with Tesla CEO Elon Musk.
⚠️ Lutnick’s Controversial Stock Endorsement
While discussing Tesla’s (NASDAQ: TSLA) recent share price decline, Lutnick made a bold call for viewers to invest.
- “It’s unbelievable that this guy’s stock is this cheap,” Lutnick declared.
- “It’ll never be this cheap again. If you want to learn something on this show tonight: Buy Tesla.”
The comments came just days after President Trump hosted a Tesla-heavy event on the White House South Lawn, widely criticized as a political infomercial for Musk’s EV company.
🚫 Blatant Ethics Violations
The Washington Post highlighted that Lutnick’s comments appeared to directly violate the Code of Federal Regulations, which prohibits executive branch officials from:
- Using their public office to endorse specific products or services.
- Providing preferential treatment to individuals or companies.
- Leveraging their position for private gain.
Government ethics experts warned that Lutnick’s endorsement was inappropriate and unethical, raising concerns about conflicts of interest.
- “This was not a casual remark — it was a clear violation of longstanding rules against using public office to promote private business interests,” said Noah Bookbinder, president of Citizens for Responsibility and Ethics in Washington (CREW).
🔥 White House Deflects, Critics Pounce
When pressed by reporters, White House press secretary Karoline Leavitt defended Lutnick, claiming he was simply reiterating support for “an American-made company like Tesla.”
- However, critics were quick to point out that Musk is one of Trump’s top campaign donors, making the administration’s public promotion of Tesla stock particularly egregious.
💡 Tesla’s Political Favoritism Raises Red Flags
The controversy follows weeks of mass layoffs at Tesla and sweeping reforms spearheaded by Musk, which include scaling back federal regulations and weakening consumer protections.
- Critics argue that the Trump administration is funneling support toward Musk’s ventures, while enabling him to dismantle regulatory oversight.
- Rep. Gerry Connolly (D-Va.) has already called for an investigation into Lutnick’s comments, requesting financial disclosures and White House correspondence.
⚠️ Implications for Tesla and the Markets
While Lutnick’s stock endorsement briefly boosted Tesla shares, market analysts warned that the political favoritism surrounding the company could expose it to heightened regulatory scrutiny.
- “The public promotion of Tesla by top government officials raises serious questions about insider influence and regulatory favoritism,” said Adam Posen, president of the Peterson Institute for International Economics.
- Meanwhile, Tesla investors face added volatility, as the company becomes increasingly entwined with political controversies.
✅ Verdict: Ethics Breach with Political Consequences
Lutnick’s public stock endorsement has triggered a wave of criticism over ethics violations and potential abuse of power.
- With lawmakers demanding accountability and watchdog groups pushing for transparency, the Tesla-Trump connection is likely to remain under intense scrutiny.
- For investors, the controversy adds political risk to Tesla’s already turbulent outlook, making the company a flashpoint for regulatory and market concerns in the months ahead.
