President Donald Trump made headlines this week by openly backing Tesla and its CEO, Elon Musk. Trump supports Musk and Tesla in a surprising turn by praising the electric car company and announcing plans to buy a Tesla himself. This move comes at a time when Tesla is facing financial struggles and protests worldwide.
Trump Supports Musk and Tesla at White House Event
On Tuesday, Trump hosted an event at the White House where five Teslas were parked on the South Lawn. The president took a special interest in a red Model S, admiring its design and even saying he would write a check for one. The Model S starts at around $80,000.
Trump also revealed that he would gift his granddaughter, Kai, a Cybertruck, which has a starting price of nearly $80,000. A photo from the event showed Trump holding a handwritten note listing Tesla’s prices, reading, “Teslas can be purchased as low as $299/month or $35K.”
His support for Musk and Tesla significantly shifts from his earlier stance. In 2024, Trump expressed skepticism about electric cars, stating, “I’m against everybody having an electric car.” Now, he is publicly championing the brand and its CEO.
Why Trump’s Support Matters for Tesla
Trump’s endorsement could have a big impact on Tesla’s market performance. The company’s stock has been struggling, dropping 45% this year and losing 15% in just one day before the event. The stock saw a slight recovery, closing 3.8% higher on Tuesday after Trump’s public support.
Tesla has also been facing backlash from critics who oppose Musk’s political involvement and his leadership in the Department of Government Efficiency (DOGE). Protesters in both the U.S. and Europe have vandalized Tesla showrooms, blaming Musk’s policies for economic and labor issues.
Financial analysts are divided on whether Trump’s backing will help or hurt Tesla. Dan Ives of Wedbush Securities warned, “Tesla is becoming a political symbol of Trump and DOGE, and that is a bad thing for the brand.” Others see the stock dip as a buying opportunity, believing in Tesla’s long-term innovation.
Will Trump’s Endorsement Backfire?
While Trump supports Musk and Tesla, his involvement might not be all positive. Some experts fear that tying Tesla too closely to politics could alienate potential buyers. The EV market is competitive, and public perception plays a major role in Tesla’s success.
Adding to the concerns, Trump’s economic policies, including tariff threats, have created uncertainty for investors. Despite his claims of helping Musk, the financial markets remain unpredictable.
What’s Next for Tesla and Musk?
Elon Musk remains a key figure in both the business and political world. With Tesla’s sales struggling in Europe and Musk dedicating more time to government roles, investors are watching closely.
Trump insists he paid full price for his Tesla, saying, “I don’t want a discount. (Musk) would give me a discount, but if I do, they’ll say, ‘Oh, I got benefits.’”
Whether Trump’s support will boost Tesla or further divide the brand remains to be seen. But one thing is clear: Tesla and Musk are now more intertwined with politics than ever before.
