The President of the United States, Donald Trump, expressed his intention to acquire a Tesla to have it available at the White House for staff use, as a show of support for Elon Musk. This gesture came after Tesla's stock had its worst day in four years due to controversies over Musk's political loyalties.
During a visit to the South Lawn of the White House, five Tesla vehicles were presented to Donald Trump, showcasing the range of available models. Tesla's stock has decreased by 45% so far in 2025, losing all gains since Trump’s election in November 2024, when investors injected more than $700 billion into the company.
Elon Musk's net worth has decreased by more than $130 billion since January, according to the Bloomberg Billionaires Index. During an interview with Larry Kudlow on Fox Business, Musk revealed that he opted for a red Model S after being questioned about his businesses and his interest in the cryptocurrency DOGE.
Trump praised Musk as a "patriot" mistreated for his efforts to reduce government spending. He highlighted Musk's ability to find frauds and waste and expressed confidence in the nation's strength due to his actions.
Tesla's stock fell by 15% after analysts cut delivery forecasts. Despite the drop, the stock rebounded by 5% the next day. Trump defended his decision to support Tesla vehicles, arguing that Musk had built a great company without seeking favoritism.
Criticism towards Musk has impacted Tesla's position in several electric vehicle markets. In Germany, registrations declined by 70% due to Musk's association with a far-right party. In China, the largest electric automotive market, Tesla faces difficulties competing with local manufacturers like BYD.
Trump condemned acts of violence at Tesla dealerships and promised to bring those responsible to justice. The abrupt drop in Tesla's stock in a single day represents the largest decline since September 2020. Musk responded to the situation with a defiant tone, highlighting the difficulty of the circumstances.
