The US president, Donald Trump, has expressed his intention to purchase a new Tesla vehicle in a show of support for Elon Musk, following a significant decline in the company’s stock price. This move comes after Tesla’s shares plummeted by over 15% on Monday, marking the largest single-day drop in more than four years. The downturn is partly attributed to growing backlash against Musk’s involvement in politics.
In a social media post late on Monday night, President Trump announced that he would be buying a new Tesla the following morning, saying he wanted to “show confidence and support” for Musk, whom he described as a “great American” who shouldn’t be penalized for bringing his exceptional skills to the table to help make America great again. However, the president didn’t specify which Tesla model he planned to purchase.
According to a report by Bloomberg, Musk responded to Trump’s post with a simple “thank you.” This exchange is notable, given that Musk has invested tens of millions of dollars to support Trump’s election campaign and is now a key player in the president’s efforts to downsize the US government.
The decline in Tesla’s stock price has been exacerbated by concerns over the company’s ability to meet delivery targets, with several analysts, including Joseph Spak from UBS Group AG, downgrading their forecasts. Furthermore, the controversy surrounding Musk’s political involvement has started to impact Tesla’s standing in some of the world’s largest electric vehicle markets. For instance, in Germany, new car registrations have dropped by 70% in the first two months of the year, following Musk’s endorsement of the far-right Alternative for Germany party in the run-up to the country’s federal election on February 23.
As the automotive industry continues to evolve, with electric vehicles playing an increasingly important role, the dynamics between political leaders, business moguls, and market trends will be closely watched. The situation highlights the complexities of navigating the intersection of politics, business, and technology, where statements and actions can have far-reaching consequences.
It will be interesting to see how this development unfolds and whether Trump’s gesture of support will have a positive impact on Tesla’s stock price and overall market performance. Meanwhile, the company’s ability to adapt to changing market conditions and consumer sentiment will be crucial in determining its success in the competitive electric vehicle market.