Commerce Secretary Howard Lutnick has sparked controversy by promoting Elon Musk’s Tesla company, citing “unbelievably cheap” stock prices as a buying opportunity. The comments came after Lutnick appeared on Jesse Watters’ show, saying, “If you want to learn something on this show tonight, buy Tesla.” Lutnick also stated that Tesla’s stock price will never be this low again.
Lutnick’s remarks have raised concerns among ethics experts, who argue that the Commerce Secretary is using his position to promote a specific company, violating long-standing traditions of government officials avoiding conflicts of interest. Richard Painter, former chief ethics lawyer under President George Bush, said, “The Commerce Secretary is not Jim Cramer.” He added that promoting a single company is virtually unprecedented and may be seen as an attempt to boost Musk’s net worth.
Tesla’s stock has dropped almost 42% since the beginning of the year, shedding over $500 billion in market value. The company’s sales have also suffered due to protests and boycotts sparked by Musk’s firing of thousands of government employees. Despite this, the administration continues to show support for Tesla, with President Trump posing for photographs in front of Teslas at a White House event.
Ethics experts point to a section of federal code that prohibits government employees from using their office for personal gain or endorsing specific products and services. Lutnick has stated that he would divest his financial holdings within 90 days of joining the government, but it is unclear whether this has been done. The Commerce Secretary’s comments have sparked debate about the ethics of promoting a single company using government influence.
Source: https://www.businessinsider.com/white-house-lutnick-promoting-elon-musk-tesla-stock-isnt-working-2025-3