Long time no see! The U.S. Secretary of Commerce publicly calls on television: Buy Tesla stock
Lutnick stated that Tesla's stock is now "incredibly cheap," urging investors to actively buy in, and called Musk the "most worthy person to bet on" he has ever seen. Analysts believe that the government's endorsement of specific companies is unprecedented, and Lutnick's actions raise suspicions of personal profit, reflecting the "crazy governance model" of the Trump administration
The federal government rarely endorses companies, and U.S. Secretary of Commerce Howard Lutnick publicly "promoted" Tesla stock.
On Wednesday evening local time, U.S. Secretary of Commerce Howard Lutnick publicly urged investors to buy Tesla stock on Fox News Channel, stating that founder Elon Musk is "the most worthy bet" he has ever seen:
"If you want to learn anything from tonight's show, it's 'buy Tesla.' Its stock is unbelievably cheap right now and will never be this cheap again."
According to media reports, Lutnick may benefit from this statement: as of the end of last year, his financial company Cantor Fitzgerald held nearly $300 million in Tesla stock.
Although Lutnick stated at his confirmation hearing on January 29 that he would sell all his holdings within 90 days, the relevant document information has not been made public.
Unprecedented Endorsement
Lutnick's public "promotion" of Tesla stock has sparked significant controversy.
Henry W. Brands, a professor at the University of Texas at Austin, expressed shock and commented:
"The president and his subordinates have long been cheerleaders for the overall economy, but I don't recall any administration openly endorsing a specific company."
Richard Painter, former chief ethics lawyer for President George W. Bush's administration, stated that public officials participating in such activities would violate the code of conduct prohibiting federal employees from promoting private interests in their official capacity.
Kathleen Clark, a law professor at Washington University in St. Louis, referred to Lutnick's appearance on Fox as "a series of ethical violations."
Regarding the appropriateness of Lutnick's televised remarks, Trump spokesperson Karoline Leavitt responded to the media on Thursday:
"The Secretary of Commerce emphasized that the president supports American companies like Tesla that produce quality products for the American people."
Tesla Stock's "Rescue" Action?
Analysts suggest that Lutnick's actions seem aimed at countering the violent protests against Tesla that have recently emerged across the U.S.
During the program, Lutnick attributed these violent protests to "a strange faction of the Democrats," believing that Musk, as the actual head of DOGE, has faced significant opposition due to his drastic budget cuts and layoffs.
During Trump's presidential campaign, Musk was once a key advisor, and Tesla's stock price soared as a result, but it later fell back to its original point.
Some viewpoints indicate that Lutnick's public call, along with President Trump's public praise for Tesla and commitment to purchase during White House events, reflects the government's intention to reverse this trend.
Desmond Lachman, a researcher at the conservative-leaning American Enterprise Institute, stated that whether recommending Tesla stock or Trump's previous launch of a personal meme coin, it is part of a broader self-serving pattern within the current administration
"This reflects a more serious problem; it is a crazy way of governing the country."