Conflict of Interest? U.S. Official Urges Investors to Buy Tesla—Ethics Experts Sound Alarm!

Commerce Secretary Howard Lutnick is facing growing backlash after publicly urging investors to buy Tesla stock during a televised interview. His comments, which many see as an unusual and inappropriate move for a high-ranking government official, have sparked a heated debate about ethics in public office. Critics argue that government officials should not be in the business of promoting individual companies, especially in a way that could influence stock prices.

A Surprising Endorsement on Live TV

During an appearance on Fox News, Lutnick made an eyebrow-raising recommendation to viewers:

“If you want to take something away from this show tonight, buy Tesla. It’ll never be this cheap again.”

His statement immediately caught people off guard. It’s extremely rare for a government official—especially someone in charge of economic and trade policies—to publicly endorse a single company’s stock.

Financial analysts, ethics experts, and lawmakers wasted no time questioning whether Lutnick had crossed a line. While there’s no evidence that he personally benefits from Tesla’s stock price, the optics of a sitting Commerce Secretary making such a bold financial endorsement have raised serious concerns.

Did Lutnick Violate Ethics Rules?

Under federal ethics laws, government officials are expected to avoid using their positions to influence the financial markets in a way that benefits private companies or individuals. Lutnick’s comments could be seen as doing exactly that.

Walter Shaub, the former director of the U.S. Office of Government Ethics, called the situation troubling:

“Government officials are supposed to be neutral in the marketplace. When a Commerce Secretary publicly promotes a specific stock, it raises serious concerns about fairness and ethics.”

A nonprofit watchdog group, the Campaign Legal Center, has already called for an investigation to determine if Lutnick violated federal ethics regulations. If he is found to have broken the rules, he could face anything from a formal reprimand to calls for his resignation.

Irony Strikes: Tesla’s Stock Drops Anyway

Despite the high-profile endorsement, Tesla’s stock has continued to struggle. Shares fell again early Thursday, extending a losing streak that has seen the stock drop nearly 42% this year.

Many experts believe the decline is due to factors much larger than Lutnick’s comments. Tesla is facing growing competition in the electric vehicle (EV) market, declining sales, and concerns over CEO Elon Musk’s controversial public statements. Some analysts speculate that Lutnick may have been trying to boost investor confidence in Tesla, but the stock’s continued slide suggests that investors are more concerned about the company’s challenges than one official’s opinion.

Elon Musk’s Politics and Tesla’s Image Problem

Tesla’s struggles aren’t just about sales numbers—they’re also tied to Musk’s increasing involvement in politics. The billionaire CEO has openly supported certain political figures, including former President Donald Trump, which has made Tesla a polarizing brand.

While some investors admire Musk’s outspoken nature, others believe his political activism is hurting Tesla’s reputation. Calls for boycotts, social media battles, and concerns about Musk’s focus on other ventures—such as X (formerly Twitter) and SpaceX—have added to the uncertainty surrounding the company.

Lutnick’s endorsement may have been an attempt to push back against Tesla’s negative press, but if that was his goal, it doesn’t appear to be working.

Political and Public Backlash

The reaction to Lutnick’s comments has been swift and intense. Lawmakers from both parties have criticized him, with some calling for stricter rules to prevent government officials from making statements that could affect the stock market.

Senator Elizabeth Warren (D-MA) was especially critical, tweeting:

“Government officials should NOT be giving stock tips on live television. This is a blatant misuse of public office and raises serious ethical concerns.”

Meanwhile, some conservative figures have defended Lutnick, arguing that he was simply sharing his personal opinion rather than issuing an official government stance. Even among his defenders, however, there is acknowledgment that his comments were unusual for someone in his position.

Could This Set a Dangerous Precedent?

Historically, U.S. government officials have avoided making public statements that could directly impact stock prices. Lutnick’s decision to break from that tradition is worrying many ethics experts.

“This isn’t just about Tesla,” said Richard Painter, former White House chief ethics lawyer. “If we start seeing more government officials publicly backing specific stocks, it could create a slippery slope where powerful figures use their positions to influence markets for personal or political reasons. That’s incredibly dangerous.”

The concern isn’t just theoretical. If more officials start following Lutnick’s lead, investors could begin questioning whether stock prices are moving based on actual company performance or because of political favoritism. That could weaken trust in both the government and financial markets.

What Happens Next?

As the controversy grows, the big question is: What will the White House and ethics officials do about it?

Some believe Lutnick will face little more than public criticism, while others think he could be formally reprimanded or even pressured to step down. If an investigation is launched and finds wrongdoing, it could have serious consequences for Lutnick’s career.

For now, the situation serves as a reminder of the delicate balance government officials must maintain when discussing financial matters. Whether this is an isolated misstep or the beginning of a broader ethics battle remains to be seen.