Trump Shows Support for Tesla by Planning to Buy a Vehicle

Former President Donald Trump recently voiced his admiration for Tesla Tesla CEO Elon Musk and revealed his intention to buy a Tesla vehicle. This announcement comes at a time when the electric vehicle (EV) company's market capitalization has seen a decline.

What Happened: On a recent Tuesday, Trump took to his social media platform, Truth Social, to express gratitude towards Musk and his work with Tesla. He accused what he termed the "Radical Left Lunatics" of attempting to undermine Tesla and sabotage Musk's reputation.

Trump drew parallels between Musk's current challenges and his own experiences during the race for the 2024 Presidential election. As a gesture of confidence and acknowledgment of Musk’s contributions, Trump stated his plan to purchase a new Tesla vehicle. He emphasized that it was unjust to target someone like Musk, who he believes is playing a vital role in the vision of "Making America Great Again."

In a show of appreciation, Musk responded positively to Trump’s words and thanked him on the platform X. Additionally, Musk shared a nostalgic video of Trump learning to drive a Cybertruck.

Why It Matters: Trump’s comments come at a critical time for Tesla, which has experienced significant pressure on its stock value. The company is facing growing competition, particularly from Chinese electric vehicle manufacturers, a decline in demand within European markets, and protests occurring at various Tesla facilities.

Tesla's stock prices have been on a downward trajectory, including a particularly poor performance that saw shares drop over 15% in a single day, closing at $222.15, according to sources. This decline represents a staggering loss of up to $800 billion in market capitalization, with shares falling more than 53% since their peak on December 17.

During an appearance on Fox Business, Musk acknowledged the difficulties of managing his responsibilities at both Tesla and the White House, yet he expressed optimism that things would stabilize in the future.

What sets Tesla apart from its competitors is that while many U.S. automakers confront issues related to tariffs, Tesla is insulated from these challenges as it primarily produces its vehicles in California and Texas.

Overall, Trump's endorsement of Musk and Tesla serves both as a personal statement of support and a political commentary on issues affecting high-profile American companies.

Trump, Tesla, Musk