A top Trump administration official is facing scrutiny after making a public endorsement of Tesla stock, a move that legal experts say may have violated federal ethics laws. While past officials have been reprimanded for similar conduct, many believe that under the current administration, such breaches are unlikely to result in consequences.
Did Commerce Secretary Howard Lutnick Cross the Line?
During a television appearance on Wednesday, U.S. Commerce Secretary Howard Lutnick made a bold statement, urging viewers to invest in Tesla stock.
“It will never be this cheap,” Lutnick said. “Buy Tesla.”
His remark comes just a week after former President Donald Trump showcased Tesla vehicles on the White House lawn in what many critics described as an infomercial for Elon Musk’s company.
According to government ethics laws, federal officials are prohibited from using their positions to promote private businesses for personal or corporate gain. Specifically, a 1989 law bans federal employees from making endorsements while in office. Presidents are generally exempt from these rules, but officials like Lutnick are not.
Despite the apparent violation, no official response has been issued, raising concerns about whether ethical standards are being upheld in the current administration.
A History of Ethics Violations Under Trump
This isn’t the first time a Trump administration official has been accused of breaching ethics rules. In 2017, White House adviser Kellyanne Conway was reprimanded for promoting Ivanka Trump’s fashion brand on national television. Following her endorsement, the head of the Office of Government Ethics (OGE) sent a letter urging the White House to investigate the incident. Conway was later warned by White House lawyers not to repeat the mistake.
But today, the OGE lacks leadership after Trump removed key ethics officials, making it unclear whether Lutnick will face any consequences.
Kedric Payne, a top lawyer at the Campaign Legal Center, warned that allowing such violations to go unchecked could lead to a slippery slope.
“It starts with one TV appearance, but it could quickly escalate to officials openly endorsing businesses and products,” Payne said. “If there are no consequences, we enter dangerous territory where corruption can flourish.”
Trump’s History of Blurring Ethical Lines
Trump’s presidency has been marked by frequent ethics controversies. During his first term, he faced criticism for allowing foreign diplomats and lobbyists to stay at his Washington, D.C. hotel, raising concerns about conflicts of interest. He also proposed hosting the G-7 summit at his struggling Doral golf resort and repeatedly defended his business ventures while in office.
His recent Tesla endorsement is another example of how Trump has disregarded traditional ethical boundaries. Unlike past presidents, who have occasionally expressed personal preferences for brands in casual conversations, Trump’s approach is seen as an aggressive marketing push for Musk’s company.
Ethics lawyer Kathleen Clark noted the difference:
“Presidents are allowed to have personal opinions on products they like, but what Trump did was transform the White House into a stage for advertising Tesla. It goes beyond just an opinion—it was an orchestrated promotion.”
Calls for Investigation into Musk’s Role
In response to Trump’s Tesla event, Senator Elizabeth Warren and three other lawmakers have called for an investigation into Elon Musk’s involvement. While presidents may be exempt from ethics laws, private business leaders are not. Warren’s letter to the OGE questions whether Musk received an unfair advantage from Trump’s endorsement.
So far, the OGE has not responded, and the Commerce Department has remained silent on Lutnick’s controversial statement. Meanwhile, White House spokesperson Kush Desai defended Lutnick, praising his business acumen and his role in shaping Trump’s trade policies.
A Dangerous Precedent?
Former White House ethics chief Richard Painter argues that ethics violations have worsened over time, noting that while past administrations had their own issues, Trump’s approach is particularly blatant.
“There’s been a deterioration in ethics,” Painter said. “What Biden did wasn’t great, but this is worse.”
As concerns over government accountability grow, the question remains—will anyone hold Lutnick or the administration accountable for these ethical breaches, or will this incident be swept under the rug?
