- In a potential violation of government ethics, Howard Lutnick fanned the fear of missing out on a Tesla rally during an interview on Fox News by literally telling voters to buy Tesla stock because it’s only going to go up in price from here.
Just days after President Trump turned the South Lawn of the White House into a Tesla car emporium, a member of his cabinet took to the airwaves urging Americans to buy Elon Musk’s stock as well.
Tesla has become the main target of public resentment focused on its controversial CEO, with protests, boycotts, and even outright arson attacks due to Musk’s role as the U.S. government’s cost-cutter-in-chief.
During an interview as commerce secretary on Wednesday, Howard Lutnick used his office to endorse the purchase of shares in the crisis-hit carmaker in comments that appear to directly contradict federal ethics regulations.
“If you want to learn something on this show tonight, buy Tesla,” Lutnick told Fox News host Jesse Watters.
The commerce secretary cited Musk as promising Americans will own five Tesla robots each come 2028. While likely an exaggeration for dramatic effect, Musk did tell shareholders last June that they would earn $1 trillion in annual profit from the sale of 100 million robots per year in a new age of abundance for humanity.
“When people understand the things he’s building—the robots he’s building, the technology he’s building—people are going to be dreaming of today and Jesse Watters, and thinking ‘gosh I should have bought Elon Musk’s stock.”
Musk pushed for Lutnick to get plum Treasury secretary role—in vain
As commerce secretary, Lutnick is naturally the point man for promoting U.S. businesses.
It makes sense that he backs Tesla, which builds all five models in the U.S. for the local market without exception.
Yet Trump has been a steadfast opponent of EVs, going so far as to warn that Biden’s $7,500 EV tax credit would “destroy the auto industry” in the U.S. by championing a technology in which China already secured control over the means of production.
Trump only changed his stance after Musk showed up with a proverbial suitcase full of a quarter billion dollars in campaign donations.
While Musk has clashed with cabinet secretaries like Marco Rubio and Sean Duffy over his DOGE cuts, he and Lutnick have also become something of a team.
It was Lutnick’s fervor for slashing government spending that spurred Musk to target a $2 trillion cut from the $6.75 trillion federal budget at a Trump campaign rally.
After Trump won in November, Musk pushed in vain for Lutnick to get the more influential role as U.S. Treasury secretary over Scott Bessent.
Tesla most expensive stock in ‘Magnificent Seven’
Due to numerous problems at Tesla, its stock has now halved in value from its $488 mid-December peak.
They have more than retraced all the gains made after the November election, prompting Trump to recommend last week that every American follow his lead and buy a Tesla.
Speaking on Watters on Wednesday, Lutnick now sought to fan potential fears that investors would miss out on a great deal in the carmaker’s shares should they wait on the sidelines.
“It’s unbelievable that this guy’s stock is this cheap,” the commerce secretary said. “It will never be this cheap again.”
In fact, Tesla is by far the most expensive stock in the Magnificent Seven relative to expectations, trading at 60 times consensus earnings estimates for 2026 versus roughly half that for its six other peers.
Can public servants endorse companies and products?
Lutnick’s exhortation is risky.
Under Section 2635 Article 702 of the United States Code of Federal Regulations, public servants are generally barred from using their office’s platform to endorse companies and products.
$TSLA | Elon Musk believes there will be more humanoid robots in the future than humans.
— Wall St Engine (@wallstengine) June 13, 2024
He anticipates the market for Tesla's Optimus Robot could reach 1B units/year, making $1T annually.
Robots might sell for $20K each, costing $10K, with Tesla capturing at least 10% market… https://t.co/kNbWDMqhSZ pic.twitter.com/cruiHcwyHi
Trump’s administration, however, has adopted Silicon Valley’s approach of eschewing permission in favor of creating facts on the ground in the hopes that no one ultimately objects.
Some have, however, leading to a growing confrontation with the judicial branch, which acts as a check on executive power.
Musk is now using his social media reach to lead a pressure campaign to impeach judges standing in the way of the administration.
