Former U.S. President Donald Trump has publicly declared his support for Tesla CEO Elon Musk, promising to purchase a brand-new Tesla in a move meant to show solidarity with the embattled billionaire. The announcement, made via Trump’s Truth Social platform, praised Musk as a “truly great American” who is making sacrifices “to help the country.”
The show of support comes as Musk faces growing backlash over his political influence and his new role leading the U.S. Department of Government Efficiency, a position that has sparked protests across the country. Critics argue that his involvement in government affairs, combined with his outspoken political stances, has led to a drop in Tesla’s sales and a sharp decline in its stock price.
Tesla Shares Plummet Amid Political and Economic Concerns
On Monday, Tesla’s stock tumbled 15.4%, continuing a downward trend that has seen the company’s valuation more than halve from its December 2022 peak of $1.5 trillion. The latest sell-off comes amid broader economic fears, as investors worry that Trump’s proposed trade policies and federal workforce reductions could lead to an economic slowdown.
Musk’s close association with Trump and his involvement in government affairs have also impacted Tesla’s global standing. In the past month, protests have erupted outside Tesla dealerships in cities such as Portland and New York, with demonstrators voicing concerns over Musk’s policy positions. The backlash has extended overseas, with reports indicating a 76% year-on-year decline in Tesla sales in Germany and a 49% drop in China, the world’s largest electric vehicle market.
Musk Responds to Trump’s Support
Despite the turmoil, Musk expressed gratitude for Trump’s endorsement. In a post on his platform X (formerly Twitter), the billionaire thanked the former president for his public support. He remains committed to his government efficiency reforms, insisting that they will ultimately benefit both American taxpayers and his businesses.
However, some Tesla investors are growing uneasy, worried that Musk’s political activities are distracting him from the challenges facing the company’s core business. The automaker is already dealing with slowing EV demand, intensifying global competition, and regulatory scrutiny, all of which have contributed to its recent struggles.
With Trump now openly backing Musk, the connection between politics and Tesla’s financial future appears stronger than ever. Whether the former president’s endorsement will help Musk weather the storm or further fuel the controversy remains to be seen.
