Trump Pledges to Buy Tesla Amid Stock Slump
Former President Donald Trump has announced he will buy a Tesla in support of Elon Musk after the automaker's stock plummeted more than 15%. Trump blamed “radical left lunatics” for boycotting Tesla and accused them of trying to "illegally and collusively" harm Musk. However, financial analysts pointed to declining sales, production concerns, and Trump’s own trade policies as the real reasons behind the stock drop.
Tesla’s stock took a major hit amid broader market concerns about Trump’s economic policies, particularly his tariff plans, which have raised fears of an economic slowdown. Investors are worried about how these policies could impact inflation and consumer spending. Musk’s leadership of the Department of Government Efficiency, a cost-cutting initiative under Trump, has also sparked controversy, with critics arguing it has hurt Tesla’s brand image.
Musk’s political involvement has led to backlash, with protests against the company and reports of Tesla vehicles being vandalized. Demonstrations have taken place outside Tesla dealerships across the U.S., and sales in key markets like Europe and China have dropped significantly. “When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent might think twice about buying a Tesla,” analyst Ben Kallo said.
Despite the turmoil, Trump doubled down on his support for Musk, calling him a “truly great American” and stating that he is “putting it on the line” to help the U.S. economy. His endorsement appeared to have an impact, with Tesla shares rising about 5% in premarket trading on Tuesday. Morgan Stanley also released a note advising investors to buy Tesla stock following its sharp decline.
While Trump’s support may temporarily boost confidence in Tesla, the company still faces long-term challenges. With declining sales, increasing competition, and Musk’s growing political entanglements, Tesla’s future remains uncertain.
