Fact Check: "On March 19, 2023, U.S. Commerce Secretary Howard Lutnick encouraged Fox News viewers to invest in Tesla, despite having a vested interest in the company through his former firm Cantor Fitzgerald, which held $300 million in Tesla shares."
What We Know
On March 19, 2023, U.S. Commerce Secretary Howard Lutnick appeared on Fox News and urged viewers to purchase Tesla stock, stating, “If you want to learn something on this show tonight, buy Tesla. It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again” (Reed Calls for IG Probe into Commerce Sec's 'Buy Tesla'). This statement came at a time when Lutnick's former firm, Cantor Fitzgerald, reportedly held significant financial interests in Tesla, with exposure approaching $1 billion (U.S. Senator Elizabeth Warren | Warren, Waters Call for Investigation).
Lutnick's comments have raised concerns regarding potential violations of federal ethics laws, which prohibit executive branch officials from using their positions to promote private businesses for personal gain (Reed Calls for IG Probe into Commerce Sec's 'Buy Tesla'). Following his appearance, both Senator Jack Reed and Senator Elizabeth Warren called for investigations into Lutnick’s actions, citing the potential conflict of interest given his financial ties to Cantor Fitzgerald (U.S. Senator Elizabeth Warren | Warren, Waters Call for Investigation).
Analysis
The claim that Lutnick encouraged investment in Tesla while having a vested interest in the company is supported by multiple credible sources. His public endorsement of Tesla stock occurred during a time when his firm had substantial holdings in the company, which raises serious ethical questions. The ethics rules applicable to Lutnick, as a cabinet member, clearly state that he is prohibited from endorsing any product or service that could benefit his financial interests (Reed Calls for IG Probe into Commerce Sec's 'Buy Tesla').
Moreover, the timing of Lutnick's comments coincided with Cantor Fitzgerald upgrading Tesla stock to a "buy" rating on the same day, suggesting a coordinated effort that could be seen as an attempt to manipulate the stock price for personal gain (U.S. Senator Elizabeth Warren | Warren, Waters Call for Investigation). This connection between his public statements and the financial interests of his firm raises questions about the integrity of his position and the potential for self-dealing.
The sources used in this analysis are from reputable political figures and news outlets, which enhances their reliability. However, it is important to note that the motivations behind the calls for investigation may also be influenced by political agendas, which could introduce some bias into the narrative.
Conclusion
The claim that U.S. Commerce Secretary Howard Lutnick encouraged Fox News viewers to invest in Tesla while having a vested interest in the company is True. His public endorsement of Tesla stock, coupled with his firm's significant financial ties to the company, constitutes a potential violation of federal ethics laws designed to prevent conflicts of interest among government officials.
Sources
- Reed Calls for IG Probe into Commerce Sec's 'Buy Tesla' Pitch
- U.S. Senator Elizabeth Warren | Warren, Waters Call for Investigation After Commerce Secretary Lutnick Promotes Tesla Stock on National TV
- Commerce secretary begs Fox News viewers to buy Tesla stock
- Stocks have never been so political as Howard Lutnick says buy Tesla
- Trump's US Commerce Secretary, who owns Tesla stock, publicly recommends buying Tesla stocks
