• Commerce Secretary Howard Lutnick urged viewers to buy Tesla stock during a Fox News appearance.
• Experts raised concerns about potential violations of the Hatch Act following Lutnick's comments.
• Tesla's stock has decreased by nearly 42% this year, with ongoing controversies over Elon Musk's leadership.
• Critics argue Lutnick's promotion of the stock undermines the ethical standards expected of government officials.

Commerce Secretary Howard Lutnick sparked controversy on Wednesday after he encouraged viewers to buy Tesla stock during an interview on Fox News. "If you want to learn something on this show tonight, buy Tesla," Lutnick stated. "It's unbelievable that this guy's stock is this cheap. It'll never be this cheap again," referring to CEO Elon Musk. The timing of his endorsement has drawn sharp criticism, especially as Tesla grapples with a significant drop in its stock price, which has fallen almost 42% this year, losing roughly $500 billion in market value since January.

Legal experts have expressed alarm over Lutnick's remarks, suggesting they may violate the Hatch Act, which forbids federal officials from using their positions to benefit private interests. Eric C. Chaffee, a law professor, noted, "It can create issues of conflicts of interest and questions of favoritism." Other commentators highlighted that government officials typically refrain from endorsing specific companies, which raises ethical and optics issues, especially within an administration linked closely to Musk.

Tesla's stock decline has also been compounded by a consumer boycott spurred by protests against Musk's actions as the head of the Department of Government Efficiency. With the hashtag #TeslaTakedown trending on social media, protests have led to vandalism targeting Tesla vehicles. Lutnick's promotion of the company comes amidst this environment, which critics argue creates a troubling dynamic between government support and private financial gain.

Former White House ethics lawyer Richard Painter criticized Lutnick's actions, stating, "The idea of promoting a company, the White House doesn't do that." The endorsement is unprecedented and presents a blurred line between public service and private enterprise. Concerns around legality and ethical propriety have become central to discussions surrounding Lutnick's comments, especially given that his former firm, Cantor Fitzgerald, holds Tesla stock.

Despite Lutnick's confident claims about Tesla's technology and innovation, the company's stock has continued to struggle, reinforcing doubts about the effectiveness of such endorsements. Locally, Musk's business practices have prompted public skepticism and challenges, with onlookers questioning the integrity of a federal secretary publicly advertising shares for a private enterprise. Following his conscientious commitment to divest interests within 90 days of joining the government, it remains unclear how these developments will evolve in the face of continued public scrutiny.

For further insights, read more on HuffPost, Newsweek, and Business Insider.