Trump, Musk, and Tesla: A Political and Business Spectacle
It was an unusual sight on the White House South Lawn—President Donald Trump standing in front of a lineup of Tesla, Inc. vehicles, flanked by Tesla CEO Elon Musk, who also serves as the Head of the Department of Government Efficiency (DOGE). This event functioned as both a press conference and what seemed like a live Tesla commercial, underscoring how deeply Musk’s ventures are tied to the U.S. government.
The timing was striking—Tesla’s stock has been struggling, erasing all gains made since Election Day. The company’s declining sales in Europe and Musk’s increasing political influence have triggered backlash, causing its stock to plummet.
Tesla Shares Rebound as Trump Voices Support
Despite recent troubles, Tesla stock climbed 3.8% on Tuesday, recouping some of the losses from Monday’s 15% drop. Trump played an active role in Tesla’s momentary recovery, declaring at the event: 
“Any violence against Tesla dealerships will be treated as domestic terrorism.”
During the speech, Trump also held what looked like a Tesla showroom price list, with financing details stating:
“Teslas can be purchased as low as $299/month or $35K.”
Trump Pledges to Buy a Tesla
In a show of personal support, Trump announced he would buy a Tesla, revealing he had already purchased a Tesla Cybertruck for his granddaughter. He also took to Truth Social, stating:
“I’m buying a brand-new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American.”
He also dismissed boycotts against the company as “illegal.”
Tesla’s Rollercoaster Stock Performance
Musk was at his wealthiest in the immediate aftermath of the 2024 United States presidential election, when investors believed his influence in the Trump administration would lead to deregulation of the electric vehicle (EV) market. However, reality turned out differently.
Instead of an easy ride, Trump’s tariff policies have created market volatility, sending Tesla shares down nearly 45% this year. The biggest factors behind Tesla’s stock decline include:
- Plummeting sales in Europe, impacting global revenue.
- Musk’s deepening political role, which is alienating investors.
- Concerns over the Department of Government Efficiency (DOGE), which some analysts say is dragging Tesla into political controversy.
Wall Street’s Mixed Reactions
Financial analysts are split on Tesla’s outlook:
Bearish Perspective:
- A Wedbush Securities report warned that if Musk continues prioritizing government roles over Tesla, the brand’s reputation could suffer further.
- Analysts fear that Tesla’s entanglement in politics could harm long-term consumer sentiment.
Bullish Perspective:
- Wedbush also noted that Tesla’s technological innovation remains strong, predicting that only 5% of Tesla owners might reconsider buying due to Musk’s political activity.
- Some investors see Tesla’s stock dip as a buying opportunity, believing the company’s fundamentals remain strong.
Trump on Discounts: “I Don’t Want One”
During the event, Trump clarified that he would pay full price for his Tesla, rejecting any notion of favoritism.
“Musk would give me a discount, but if I take it, they’ll say I got special benefits.”
What’s Next for Tesla and Musk?
With Tesla’s stock fluctuating and Musk balancing his corporate empire with government responsibilities, the company’s future remains uncertain. Key questions loom:
- Can Musk refocus on Tesla, or will politics continue to overshadow the company?
- Will Trump’s tariff policies further impact Tesla’s global market?
- Is Tesla’s brand image at risk due to political controversies?
For now, Tesla has Trump’s backing, but whether that’s enough to stabilize its stock remains to be seen.
