Trump Supports Tesla Amid Market Challenges

President Donald Trump has recently shown his support for Tesla (TSLA) CEO Elon Musk, announcing his intention to purchase a Tesla vehicle. This comes during a challenging period for the electric vehicle manufacturer, which has seen a significant decline in its market capitalization.

What Happened: On Tuesday, Trump shared his thoughts on Truth Social, praising Musk for his contributions to the American economy while criticizing the "Radical Left Lunatics" for allegedly trying to undermine Tesla by orchestrating a boycott against the company.

Trump likened the attacks on Musk to his own experiences during the ongoing 2024 Presidential election campaign. He emphasized that it is unfair for Musk, a individual who is striving to "Make America Great Again," to be targeted for political reasons. As a gesture of his support, Trump declared his plan to buy a new Tesla vehicle.

In response to Trump's comments, Musk expressed his gratitude and thanked Trump via his platform, X. He even shared a video of Trump learning how to drive a Cybertruck, showcasing their interaction.

Why It Matters: Trump's statements come at a crucial time for Tesla, which has been facing numerous challenges, including increased competition from Chinese electric vehicle manufacturers, declining demand in Europe, and protests occurring at its facilities. As a result, Tesla's stock has experienced a downward trend, with shares falling significantly in recent weeks. During the last session, Tesla's stock saw its worst day in five years, following a streak of seven consecutive weeks of losses.

When asked about the situation on Fox Business, Musk shared that while he is managing his responsibilities at the White House, handling business has been quite difficult. Despite these challenges, he maintains that he will continue to fulfill his duties for another year and remains hopeful for improvements in the long term.

In contrast to other U.S. automakers which are grappling with tariff issues, Tesla is in a relatively stable position, as it produces all of its vehicles domestically in California and Texas.

On Monday, Tesla's stock dropped over 15%, closing at $222.15, according to data from Benzinga Pro. Overall, the company has lost about $800 billion in market value since its peak on December 17, with a decline greater than 53% recorded.

Trump, Tesla, Musk