Investigation Urged into Secretary Lutnick’s Tesla Stock Comments
A nonpartisan legal organization, Campaign Legal Center (CLC), has filed a formal complaint to the Office of Government Ethics and the ethics official at the U.S. Department of Commerce. This action comes in response to comments made by U.S. Commerce Secretary Howard Lutnick during a recent appearance on Fox News. Lutnick encouraged viewers to “buy Tesla,” referring specifically to the stock of the electric vehicle manufacturer founded by Elon Musk.
Allegations of Ethical Violations
The CLC contends that Lutnick’s remarks could represent a “flagrant violation” of federal regulations, which prohibit government officials from leveraging their positions for personal financial gain or endorsing products or services.
According to established federal guidelines, executive branch employees are barred from utilizing their public roles for private profit or promoting any commercial offerings. The CLC’s complaint urges an investigation into whether Lutnick breached these legal stipulations.
Concerns over Conflicts of Interest
Critics have pointed out potential conflicts of interest stemming from Lutnick’s comments. Notably, it has been highlighted that he did not disclose his family’s financial stake in Tesla, which reportedly amounts to around $840 million.
Further complicating the situation, Elon Musk, who leads Tesla and holds the largest share in the company, is involved in ongoing federal initiatives under President Donald Trump aimed at cutting federal personnel and programs.
Call for Accountability
Kedric Payne, vice president and general counsel at CLC, remarked, “The president’s Cabinet members take an oath to serve the American people, and with that oath comes the ability and privilege to exercise a vast amount of power.” He urged the Office of Government Ethics and Commerce officials to hold Lutnick accountable, reinforcing public trust that ethics violations will have consequences.
Lutnick’s Television Appearance
Lutnick made his controversial statement during an episode of “Jesse Watters Primetime” on Fox News, asserting, “Buy Tesla. It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again… Who wouldn’t invest in Elon Musk?”
Tesla’s Financial Performance
The backdrop to Lutnick’s endorsement is Tesla’s recent performance, as the company’s stock has seen a significant decline of 42% since the beginning of the year and fell further following Lutnick’s appearance on Fox News.
Earlier this month, President Trump hosted a Tesla showcase at the White House, coinciding with rising public scrutiny over Musk’s affiliations with the administration and the company’s declining stock values.
