U.S. President Donald Trump announced on Tuesday that he will purchase a new Tesla to express his support for the electric carmaker and its CEO, Elon Musk, amid recent protests and a significant drop in Tesla’s stock price.
Trump’s statement comes in the wake of protests against Musk, who has played a pivotal role in the Trump administration’s efforts to streamline the federal workforce. Demonstrations against Tesla and Musk’s involvement in these workforce cuts have surged in recent weeks. Last week, around 350 protesters gathered outside a Tesla dealership in Portland, Oregon, while nine arrests were made during another protest at a New York City Tesla dealership earlier in March.
Musk, who leads the Trump administration’s Department of Government Efficiency (DOGE), has been at the center of controversy. However, Trump took to his Truth Social platform to defend Musk, praising his efforts to assist the country and describing him as a “fantastic” leader. “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” Trump wrote.
Musk expressed gratitude for the president’s endorsement, thanking him publicly on his own social media platform, X (formerly Twitter).
Despite Trump’s show of support, Tesla’s stock has faced significant losses in recent months. The company’s market capitalization has dropped more than 50% since reaching a peak of $1.5 trillion on December 17. The decline has been attributed to slumping vehicle sales, diminishing profits, and investor concerns that Musk’s political engagements may be diverting attention from Tesla’s core business.
Tesla’s fall from its previous highs underscores the challenges facing Musk as he navigates both his role at the helm of Tesla and his expanding political influence.
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