Trump official said 'buy Tesla' on TV—did it violate ethics laws?

LOS ANGELES - A Trump administration official’s televised plug for Tesla stock has sparked fresh concerns about ethical violations inside the federal government—and raised the question: Did he break the law?

During a recent TV appearance, U.S. Commerce Secretary Howard Lutnick said, "It will never be this cheap. Buy Tesla," shortly after former President Donald Trump turned the White House lawn into a showcase for Tesla vehicles. Ethics experts say Lutnick’s comment appears to violate a longstanding law barring federal employees from using their position to promote private interests.

But unlike previous administrations, legal action—or even a public rebuke—may not come.

What does the law say about product endorsements by federal officials?

What we know:

Since 1989, U.S. law has prohibited federal employees from using public office "for private gain." This includes endorsing products, services, or companies—especially when the official's position could add weight to the recommendation.

While presidents are generally exempt from federal ethics laws, most other federal employees—including cabinet officials like Lutnick—are not.

Legal experts say Lutnick’s on-air comments likely crossed that legal line. "Buy Tesla" is considered an endorsement, and under government ethics rules, that’s forbidden.

What we don't know:

While ethics experts widely agree that Lutnick’s comment likely violated federal rules, it remains unclear whether any formal investigation will be launched.

The Office of Government Ethics has not publicly responded, and the current lack of leadership within key oversight agencies—many of which saw leadership turnover during the Trump administration—adds uncertainty.

It’s also unknown whether any internal review is underway at the Commerce Department, or if Congress will push for further accountability. Until there's an official response or disciplinary action, the legal and political consequences remain unresolved.

How past violations were handled—and why this one’s different

The backstory:

In 2017, White House adviser Kellyanne Conway was formally rebuked after telling viewers to "go buy Ivanka stuff" during a TV interview. The Office of Government Ethics (OGE) quickly responded, asking the White House to investigate and confirm she would comply with the law going forward.

But today’s landscape is different. The head of the OGE was fired by Trump, and several agency inspectors general—who typically lead investigations—are no longer in place.

"There’s been a deterioration in ethics," former White House ethics chief Richard Painter told the Associated Press. "What Biden did wasn’t good, but this is worse."

What experts say about Lutnick’s Tesla comments

What they're saying:

Ethics experts are largely in agreement that Lutnick’s comment violated federal ethics law—but some believe it may go unpunished.

"They’re not even thinking of ethics," Painter said of Trump administration officials, speaking to the Associated Press. 

Kedric Payne, chief counsel at the nonpartisan Campaign Legal Center, said the infraction may seem small, but it's potentially serious.

"It starts with one TV appearance," Payne said. "But if there are no consequences, you get into a danger zone of corruption."

As of Friday, there had been no public action taken against Lutnick.

Can anything be done now?

What's next:

The Campaign Legal Center sent a letter calling for an investigation, but the Office of Government Ethics has yet to respond. The Commerce Department also declined to comment.

Meanwhile, Sen. Elizabeth Warren and three other Democratic senators have called for an investigation into Elon Musk’s involvement in the White House Tesla showcase, arguing that even if presidents are exempt from ethics laws, private business leaders are not.

Still, without top ethics officials in place and with enforcement mechanisms weakened, watchdog groups are doubtful that any consequences will come from the incident.

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