US Commerce Secretary Howard Lutnick is under fire and drawing the ire of ethics experts after he went on Fox News and encouraged viewers to purchase Tesla stock, a step that could be in violation of federal ethics regulations banning government officials from endorsing private enterprises, the Washington Post has reported.
Lutnick made the remarks during an interview Wednesday evening with Jesse Watters, in which he stated, "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 remark is being broadly interpreted as a validation of Tesla and a bid to send the stock of Elon Musk's firm upward, which has suffered financially in the face of opposition to Musk-directed federal reductions across the U.S. DOGE Service. Ethics monitors, such as the Citizens for Responsibility and Ethics in Washington (CREW), have complained of the Trump administration's seemingly tilted treatment of Musk, who is one of the administration's largest political contributors and is now a top administration member.
Ethical issues regarding government endorsements
According to the Code of Federal Regulations, government officials in the executive branch are prohibited from utilizing their public office to promote any product or business. They should also refrain from engaging in any action that would amount to preferential treatment or private benefit.
"The fundamental requirement of our system of government is that public service should not be inextricably linked to personal financial profit," said Danielle Brian, the executive director of the Project on Government Oversight. "That's essentially what an oligarchy is."
CREW's Jordan Libowitz continued, "It certainly makes it appear as though the administration is attempting to prop up the stock, and you have to wonder would they be doing this if it were a company not associated with someone in the administration?"
The White House came to the defence of Lutnick's comments, with US Press Secretary Karoline Leavitt saying he was merely reiterating a commitment of support for "an American-made company like Tesla." But she declined to comment on whether it was proper for a cabinet-level official to endorse a particular stock.
Tesla struggles and political entanglements
Tesla shares have dropped sharply from their December peak of $480 a share to $236.26 as of Thursday's close. The drop follows consumer boycotts, protests, and backlash associated with Musk's leadership of sweeping federal budget reductions.
Trump recently displayed Tesla cars on the White House lawn and said he would buy one himself, a show of support for Musk. Musk, who has been awarded billions in federal contracts and is likely to receive $11.8 billion more, has also threatened to treat anti-Tesla protesters as domestic terrorists.
Attorney General Pam Bondi has joined in those sentiments, and protests at Tesla plants have persisted throughout the US and Europe. The administration's close identification with Musk and Tesla has only fuelled criticism that Trump officials are eroding federal ethics standards.
Wider implications for government ethics
Commentators point out that this recent episode is a part of a pattern of ethics boundary-pushing in the style of Trump's initial term, during which whistleblowers sounded alarms regarding his family business conflicts. Now, the Trump administration's connections reach into cryptocurrency, media, and other sectors involving significant donors or officials.
"It's an unmistakable public declaration that the administration is accepting the notion that they can disregard our legal codes," Brian said. "Now it seems other government officials see that it's open season to disregard these statutes."
A representative for Lutnick would not comment on the situation. In the meantime, ethics activists are demanding an internal probe and emphasising again the need to maintain public office as distinct from private interest.
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