Donald Trump has vowed to purchase a brand-new Tesla in a display of solidarity with Elon Musk, the electric carmaker’s chief executive, whose political influence and role in the US Department of Government Efficiency have sparked widespread protests.
The president made his declaration via his Truth Social platform, lauding Musk as a “truly great American” who is “putting it on the line to help the country.”
Shares in Tesla took a 15.4 per cent dive on Monday against the backdrop of a broader market sell-off, triggered in part by concerns that Trump’s confrontational trade policy and federal workforce reductions could push the US economy into a downturn. The automaker’s market capitalisation, which once reached a record high of $1.5 trillion in December 2022, has now been more than halved.
Musk, who helped finance Trump’s election campaign and subsequently took charge of the new Department of Government Efficiency, has seen his politics weigh heavily on Tesla’s prospects. Protests erupted across the US this month, including outside dealerships in Portland, Oregon, and New York City, while European buyers are said to be shunning Tesla over Musk’s policy positions. The backlash has contributed to a notable drop in sales, including a 76 per cent year-on-year fall in Germany and a 49 per cent slump in China, the world’s largest car market.
Despite the turmoil, Musk expressed gratitude to the president on his platform X, thanking him for the public support. The billionaire entrepreneur remains adamant that reforms to government structures and cost-saving measures will ultimately benefit both his companies and the American public, even as some investors worry that his political commitments distract him from the challenges facing Tesla’s core business.
Read more:
Trump pledges to buy a Tesla in show of support for Musk amid share slump