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Commerce Secretary Howard Lutnick recommended the public “buy Tesla” on television last week. The comment has raised concerns over potential ethical violations, as federal law prohibits government officials from endorsing private companies for personal gain.

The Details: During a TV appearance, Lutnick stated, “It will never be this cheap. Buy Tesla,” shortly after former President Donald Trump showcased Tesla vehicles on the White House lawn. Following the comments, Tesla stock dipped and House Oversight and Government Reform Committee ranking member Rep. Gerry Connolly (D-VA) called for an investigation into whether Lutnick broke the law.

For Context: The law prohibiting federal employees from using public office “for private gain” has been in place since 1989. It bars endorsing products, services, or companies, particularly when the official's position could lend weight to the recommendation. While presidents are generally exempt from federal ethics laws, cabinet officials like Lutnick are not.

How The Media Covered It: Both Associated Press (Left bias) and Fox News (Right) noted that most ethics experts agreed Lutnick broke the law, but that he may not be formally investigated for his comments as the head of the Office of Government Ethics was recently fired by President Donald Trump. MarketWatch (Center) focused on the growing political polarization moving into the stock market, noting that Gov. Tim Walz (D-MN) said to sell Tesla while the White House appeared to prop up Tesla. 

Revised by the AllSides staff (of humans) after a first draft from our custom AI. Learn more. Support our mission.

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The nation’s political battleground shifted to the stock market this week, as Commerce Secretary Howard Lutnick urged people to buy shares of Tesla Inc. and Minnesota Gov. Tim Walz mocked the electric-vehicle giant’s share-price drop.

“Buy Tesla — it’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again,” Lutnick said on Jesse Watters’s show on Fox News late Wednesday.

When a White House adviser in the first Trump administration told TV viewers to “Go buy Ivanka stuff,” top government lawyers sprang into action, telling her she had violated ethics rules and warning her not to do it again.

Government ethics experts have varying opinions on whether the 2017 criticism of Kellyanne Conway went far enough, but many agree such violations now might not even draw an official rebuke.

A Trump administration official’s televised plug for Tesla stock has sparked fresh concerns about ethical violations inside the federal government—and raised the question: Did he break the law?

During a recent TV appearance, U.S. Commerce Secretary Howard Lutnick said, "It will never be this cheap. Buy Tesla," shortly after former President Donald Trump turned the White House lawn into a showcase for Tesla vehicles. Ethics experts say Lutnick’s comment appears to violate a longstanding law barring federal employees from using their position to promote private interests.