Former U.S. President Donald Trump has pledged to buy a Tesla vehicle as a show of support for Elon Musk amid the company’s ongoing struggles. The announcement, made via Trump’s social media platform, Truth Social, comes at a critical time for Tesla, which has been dealing with significant stock declines and public backlash against its CEO.
Trump’s Public Show of Support for Musk
Standing alongside Musk at the White House, Trump announced his decision to purchase a “brand-new” Tesla, praising the entrepreneur as a “truly great American.” The former president criticized what he referred to as an “illegal” boycott against Tesla, orchestrated by what he called “Radical Left Lunatics.”
“Elon Musk is being unfairly targeted, and I won’t stand for it. Tesla is an incredible company, and I’m proud to support it by buying one myself,” Trump stated.
To reinforce his support, Trump personally selected a red Tesla Model S during a White House event. While he is not permitted to drive himself due to security protocols, he mentioned that the vehicle would remain at the White House for staff use.
Tesla’s Declining Stock and Market Setbacks
Tesla’s stock plummeted by 15% on March 10, reducing its market capitalization to $714 billion, a sharp decline from its peak of $1.54 trillion in December 2024. Investors have expressed concerns about Tesla’s future, particularly as the company struggles with declining sales in Europe and a series of political controversies involving Musk.
Trump’s endorsement provided Tesla with a short-term boost, leading to a 3.7% recovery in share price the following day. However, financial analysts remain cautious about Tesla’s long-term prospects.
For an overview of Tesla’s stock performance, visit the U.S. Securities and Exchange Commission (SEC).
Why Tesla is Facing Backlash in Europe
Beyond financial struggles, Tesla has faced mounting criticism in Germany and other European markets. Musk’s open support for Germany’s far-right Alternative for Germany (AfD) party has resulted in consumer protests and declining sales. Activists have staged demonstrations at Tesla showrooms, and reports indicate that several stores have been vandalized in response to Musk’s political affiliations.
For the latest consumer reports and European market trends, refer to the European Commission’s Competition Policy.
Trump and Musk’s Political Alignment
Trump’s show of support for Musk aligns with their broader political relationship. Musk, who has previously criticized government subsidies for electric vehicles, has expressed support for deregulation policies that Trump has championed. Their alliance is seen as a mutually beneficial strategy, as both figures face increasing opposition from Democratic leaders and progressive activists.
The former president’s backing could help Musk regain some consumer confidence, particularly in the United States, where conservative voters have shown strong support for Tesla despite the company’s recent setbacks.
Market Analysts Weigh In
Despite Tesla’s short-term stock rebound following Trump’s purchase announcement, financial analysts warn that a single endorsement will not resolve Tesla’s larger issues. The company’s European sales slump, rising competition from Chinese electric vehicle makers, and ongoing supply chain concerns continue to weigh on its future growth prospects.
“Trump’s Tesla purchase is a symbolic move, but it doesn’t address fundamental market concerns,” said Daniel Weissman, a senior analyst at Bloomberg Intelligence. “Unless Tesla can stabilize sales and rebuild consumer trust, the company will continue facing pressure from investors.”
For an in-depth analysis of Tesla’s financial outlook, check Bloomberg’s Market Analysis.
Will Trump’s Endorsement Help Tesla?
While Trump’s endorsement has generated significant media attention, it remains uncertain whether it will translate into a meaningful turnaround for Tesla. The company’s ability to regain investor confidence, increase sales, and navigate political tensions will be key to its recovery.
With Musk and Trump forging a stronger alliance, the coming months will reveal whether this partnership can effectively counter Tesla’s declining fortunes.
For updates on Tesla’s financials and stock trends, visit the NASDAQ Tesla Page.
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A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for SKC News, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin