Investigation Requested Following Trump's Commerce Secretary's Recommendation for Fox Viewers to Purchase Tesla Stock | Carscoops

      A recommendation from a U.S. politician to invest in Tesla stocks has garnered attention for all the wrong reasons.

      Commerce Secretary Howard Lutnick suggested to the public that they should purchase Tesla stock during an interview, which has raised concerns from Rep. Connolly due to Lutnick’s connections to the company and his position in the government. The calls for Elon Musk to resign as Tesla's CEO are becoming increasingly louder with each passing day.

      Tesla's stock has dropped around 35 percent, protests against the company seem to be intensifying, and vandals are targeting the EV manufacturer’s showrooms and products. At the same time, discussions about Elon Musk's qualifications as the firm’s CEO are ongoing while political tensions are trying to redirect the situation behind the scenes.

      Rep. Gerry Connolly, representing Virginia, has openly called for an investigation into how the Trump administration is allegedly "utilizing taxpayer funds to benefit the President’s close associates," claiming an ethics breach has occurred.

      "Buy, Buy, Buy?"

      The controversy stems from comments made earlier this week when Commerce Secretary Howard Lutnick recommended that the public invest in Tesla stock, equating its current share price to a rare investment opportunity. This statement was made during his appearance on Jesse Watters Primetime on Fox News, where he discussed the negative sentiment surrounding Tesla, including issues affecting dealerships, charging stations, and private vehicles.

      Lutnick stated, “If you want to learn something tonight, buy Tesla. It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again.” He further remarked, “I mean, who wouldn’t invest in Elon Musk? You gotta be kidding me.”

      However, there is a potential conflict of interest, as Lutnick may benefit from his own recommendation. Yahoo Finance reported that Lutnick’s former company, Cantor Fitzgerald, upgraded Tesla stock on the same day and has made significant investments in the firm. Even though Lutnick has divested from the company, his sons hold senior positions there, and Cantor established a $425 price target on Tesla after visiting the automaker's AI data center and production facility.

      While several notable Republicans have defended Musk—Trump displayed Teslas at the White House and acquired two models—some are calling for a change in leadership. Ross Gerber, a veteran Tesla investor and CEO of Gerber Kawasaki Wealth Management, has urged Musk to resign, stating, “He is not running Tesla. The business has been neglected for too long.”

      Calls For An Investigation

      Now, Lutnick's endorsement is facing its own scrutiny. Representative Gerry Connolly, the top Democrat on the House Oversight Committee, has formally requested an investigation into Lutnick's remarks, contending that a sitting Commerce Secretary promoting a specific company—particularly one with close ties to the administration—oversteps ethical boundaries.

      "This is just the latest instance of the Trump Administration utilizing taxpayer resources to benefit the President’s inner circle," Connolly wrote in a letter to the acting general counsel of the Department of Commerce, as reported by The Hill. He has requested Lutnick's financial disclosures and internal communications related to the Fox News interview, including any emails exchanged with the White House, the Office of Government Ethics, and other oversight agencies.

      Tesla’s stock has decreased by 26.37% in the past month.

      The request for an investigation follows recent actions by the Trump administration to remove independent agency watchdogs and reduce regulatory staff—actions that Musk’s DOGE department is believed to have supported. Connolly accused Musk of leveraging his dual roles in both government and the private sector to facilitate extensive firings and deregulation while profiting significantly from the turmoil.

      “Tesla is owned by an individual who has been granted the President’s permission to dismantle the federal government,” Connolly stated. “These ongoing legal violations necessitate a response proportional to the level of misconduct, in order to deter further lawlessness and assure the American public that members of this Administration are working for the benefit of all, rather than to enrich a select few.”

      As scrutiny intensifies and ethical dilemmas accumulate, the narrative surrounding Tesla and Musk becomes increasingly intricate. What began as a groundbreaking automotive company is now ensnared in political conflict, federal investigations, and allegations of self-serving actions at the highest level. Whether Tesla can navigate through this turmoil or becomes collateral damage in a broader confrontation remains uncertain.