Trump Pledges to Buy Tesla to Support Musk After Share Drop

Trump Expresses Support for Tesla Amidst Stock Decline and Controversies

In a surprising twist, former President Donald Trump recently expressed his admiration for Elon Musk and announced plans to purchase a “brand new Tesla,” despite previously criticizing electric vehicles. This endorsement comes at a time when Tesla’s stock prices have experienced significant turbulence, falling to their lowest levels since before the 2024 election.

Following Trump’s election, Tesla’s shares skyrocketed, buoyed by Musk’s appointment in a role some have described as the administration’s de facto cost-cutting czar. However, the tides have turned dramatically. Just this past Monday, Tesla’s stock plummeted over 15% in a single day and has now dropped more than 50% since hitting its mid-December peak. Investors have reacted to disappointing sales figures and a wave of protests concerning Musk’s controversial political engagements.

In a post on the social media platform Truth Social, Trump defended Musk, saying he was doing a “fantastic job" and attributing the company’s challenges to efforts by “radical left lunatics” attempting to boycott Tesla. He emphasized his support by declaring, "In any event, I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American.”

As news of Trump’s planned purchase broke, Tesla’s share price experienced a slight uptick in pre-market trading on Tuesday, reflecting a glimmer of hope among investors. Musk acknowledged Trump’s support with a grateful post on social media, highlighting the complex relationship between the two powerful figures.

This recent display of support from Trump comes after a January executive order that removed tax incentives for electric vehicles, a move which posed challenges for automakers heavily invested in the electric vehicle market. Trump had previously dismissed electric vehicle support as “lunacy” but later acknowledged he would back the sector due to Musk’s political backing.

Initially, investors believed that the financial and operational ties between Musk and Trump would bolster Tesla’s stock, pushing prices to unprecedented heights. However, Musk’s active involvement in the administration has sparked criticism. Detractors argue that he may not be dedicating enough time to Tesla, which is experiencing a downturn in vehicle sales.

Additionally, Musk has faced backlash due to his aggressive moves in government, including substantial cuts to federal agencies through an initiative he has dubbed the "Department of Government Efficiency." These actions have ignited a firestorm of protests against Tesla, which has become a focal point for demonstrations. Notably, some Tesla charging stations near Boston were set ablaze, and shots were fired at a Tesla dealership in Oregon just last week, illustrating the heightened tensions surrounding Musk’s political involvement.

As protests continue and Tesla grapples with declining sales, the broader implications for the electric vehicle industry remain uncertain. Investors are left to wonder how Musk’s dual roles—as both the CEO of Tesla and a significant figure in a controversial administration—will impact the company’s future.

Overall, President Trump’s recent statements mark a noteworthy pivot given his historical stance on electric vehicles. As he publicly aligns himself with Musk, many are left speculating about the long-term ramifications for Tesla, its stock prices, and Musk’s leadership amidst ongoing controversies. The intersection of corporate interests and politics continues to evolve, indicating that the relationship between tech giants and government officials is more complex than ever. As the situation develops, the auto industry, electric vehicle advocates, and investors will be closely monitoring the unfolding drama surrounding Tesla, Musk, and Trump’s political maneuverings.