First, I only buy stocks in the US during recessions and I know the sector I focus on. That sector is the first to be “bailed out” as the government relaxes all known rules to make the industry profitable, so that other sectors will come along. You can never go wrong, as for more than 50 years, all US governments have used one tool to fight recession, and that sector has always benefitted.

In Dec 2024, I sold all my positions after Trump returned. I am a Democrat and always think Reublications will find ways to crash the economy with a recession, natural luck, big tax cuts and the typical. So, as I write, I have zero US stocks. I hope we do not have a recession, but if it does happen, I will be greedy to bounce.

But as everything happens in this young Trump 2.0 Presidency, one person I do not understand anymore is Elon Musk. He sells a product named Tesla which mainly the liberals in America and Europe buy. But he goes after them daily. Does he think anyone in Alabama, West Virginia, etc cares to drive a Tesla? Without CA, MA, NY, MD, etc there may not be Tesla today. How? Those states offer generous tax rebates for EV cars and they fueled Tesla ascension as the only major EV producer in the US. California offered EV tax credits before the US government. In other words, CA gave Tesla “free” cash as it shaped buying decisions.

But Musk seems to always fight with these customers and their leaders. Get me right: when I see an own-goal, I know one even before the referee calls.  You see, what does this village boy know when billionaires are playing their games? You are correct: I do not understand how a man who owns Tesla will always fight with blue states. Sure, Trump wants to buy a new Tesla as the company’s valuation takes a heat: “President Donald Trump has pledged to buy a new Tesla vehicle to show his support for Elon Musk, as the electric carmaker struggles with a stock market crash, declining sales, and intensifying protests.”. A presidential buy could do the magic. Good luck, Elon.

After soaring for years, Tesla’s stock has tumbled over 50% from its recent highs, breaking away from the so-called “Musk trade” that’s lifted the billionaire’s other companies. While investors appear to be buying Elon Musk’s vision of robotaxis and artificial intelligence, analysts say Tesla shareholders are concerned about Musk “being spread too thin,” given his focus on cutting government spending, along with growing stigma around the brand. Tesla’s profits have plunged in several countries amid increased competition, particularly in China.

President Donald Trump has pledged to buy a new Tesla vehicle to show his support for Elon Musk, as the electric carmaker struggles with a stock market crash, declining sales, and intensifying protests.

“To Republicans, Conservatives, and all great Americans, Elon Musk is “putting it on the line” in order to help our Nation, and he is doing a FANTASTIC JOB! But the Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla, one of the World’s great automakers, and Elon’s “baby,” in order to attack and do harm to Elon, and everything he stands for,” Trump said.

He added that “they tried to do it to me at the 2024 Presidential Ballot Box.”

“In any event, 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. Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???”

The announcement, made on Trump’s Truth Social platform on Tuesday, came amid what his allies have termed the “Tesla Takedown”, a reference to the growing demonstrations against Musk’s role in implementing massive cuts to the federal workforce under the Trump administration.

Trump’s endorsement of Tesla appeared to provide a temporary lift to the company’s stock, which rebounded 5% in premarket trading after suffering its worst single-day decline in over four years on Monday.

However, industry experts argue that while Trump’s symbolic gesture may help bolster Musk’s public image among conservative supporters, it does little to address the real challenges Tesla is facing. Many have pointed out that if Trump truly wanted to help Tesla and the broader electric vehicle (EV) industry, he would need to reverse his administration’s aggressive rollback of pro-green energy policies, which had been boosting EV sales under the previous administration.

Tesla, once a dominant force in the EV market, is experiencing an unprecedented period of turmoil, with its stock price, sales, and brand reputation all taking major hits. Musk’s increasingly controversial political activity, particularly his leadership of the Trump administration’s Department of Government Efficiency (DOGE), has alienated large portions of Tesla’s customer base and sparked a wave of anti-Tesla protests across the U.S.

Last week, 350 demonstrators gathered outside a Tesla showroom in Portland, Oregon, condemning Musk’s role in eliminating thousands of government jobs. Earlier this month, a Tesla dealership in New York City was the site of another demonstration, where nine people were arrested after tensions escalated. Protesters argue that Musk’s deep involvement in Trump’s efforts to dismantle federal agencies and reduce public sector employment is a direct betrayal of Tesla’s original image as a forward-thinking, progressive company.

The backlash has translated into declining consumer interest in Tesla, particularly in states and countries that have traditionally favored green energy policies. According to a report from Bank of America, Tesla’s vehicle sales in Europe plunged by 50% in January compared to the previous year. The report attributed the drop in part to growing unease over Musk’s politics, as well as delays in the release of a redesigned Model Y.

Trump defended Musk, saying the billionaire was “putting it on the line” to help the country and was doing a “fantastic” job. Musk responded on his own platform, X, thanking Trump for his endorsement.

Trump’s EV Policies Contradict His Support for Tesla

While Trump’s public embrace of Tesla and Musk has been celebrated by many of his supporters, it is believed that his administration’s aggressive rollback of pro-EV policies is actively harming the industry, including Tesla itself.

Since taking office in January 2025, Trump has dismantled nearly all of the Biden-era policies that were fueling EV adoption in the U.S.

Among the most damaging reversals are:

• Eliminating federal EV tax credits: Under Biden, consumers could receive up to $7,500 in tax credits for purchasing an electric vehicle. These incentives helped drive demand for Tesla and other EV brands. Trump’s decision to terminate these credits has made EVs less affordable, discouraging buyers.
• Defunding EV charging infrastructure: The Biden administration had earmarked billions of dollars to expand the national EV charging network, making it easier for Americans to transition from gas-powered cars. Trump slashed this funding, significantly stunting infrastructure growth.
• Rolling back emissions standards: Biden had imposed strict emission reduction targets that pushed automakers to prioritize EV production. Trump has reversed these regulations, allowing companies to slow down EV development and extend the lifespan of gasoline-powered vehicles.
• Removing federal fleet EV mandates: The previous administration had committed to converting the entire federal vehicle fleet to electric cars, a move that would have resulted in major contracts for Tesla and other EV makers. Trump scrapped the plan, eliminating what could have been a lucrative revenue stream for the industry.

Industry analysts argue that while Trump’s symbolic support for Tesla may boost Musk’s morale, it cannot compensate for the material damage his policies are causing to the electric vehicle market.

Tesla’s stock has suffered a dramatic collapse since reaching its all-time high of $1.5 trillion in market capitalization on December 17, 2024. The company has now lost more than 50% of its value, erasing most of the gains it made following Musk-backed Trump’s electoral victory in November.

The decline has been fueled by a combination of falling sales, growing brand toxicity, and investor concerns that Musk’s political distractions are preventing him from properly managing Tesla.

On Monday, Tesla shares experienced their biggest single-day drop since September 2020, dragging the Nasdaq down nearly 4%, its worst decline in years. Analysts warn that unless Tesla can stabilize its business and repair its reputation, the company’s downward spiral may continue.

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that the government is aiming for a 7% annual GDP growth rate, significantly higher than the 4.6% projection for 2025.

The ambitious target, according to Edun, is necessary to reduce poverty and drive economic transformation, a goal the administration believes is essential for long-term stability and prosperity.

Speaking at the Arise/KPMG Budget Day on Monday, Edun expressed optimism about Nigeria’s economic trajectory, citing anticipated declines in inflation, improved macroeconomic stability, and a more favorable business environment as factors that will support economic expansion. However, the minister’s optimism comes at a time when Nigeria’s economic realities paint a more troubling picture, as businesses struggle with high inflation, rising costs, and foreign exchange volatility, all of which threaten economic growth prospects.

Edun acknowledged that while a 4.6% GDP growth rate is expected in 2025, the government’s focus is on pushing it closer to 7% per annum, as only at that level can economic growth meaningfully lift millions of Nigerians out of poverty.

“We projected growth at 4.6%, but I think that is not our ambition. Our ambition is to, as soon as possible, get to about 7% per annum GDP growth, because it is at that level that you begin to really lift people out of poverty,” Edun remarked.

However, this projection is coming at a time when the Nigerian Economic Summit Group (NESG) has reported that over 7 million micro, small, and medium-sized enterprises (MSMEs) shut down between 2023 and 2024 due to Nigeria’s deteriorating business environment.

The NESG report noted that MSMEs serve as the backbone of Nigeria’s economy, contributing nearly 50% of the GDP and employing over 80% of the workforce. Their mass closure over the past two years has heightened concerns about rising unemployment, reduced productivity, and worsening economic hardship. Analysts have warned that if current conditions persist, even more businesses will collapse in 2025, which could further destabilize the economy and make the government’s growth targets highly unrealistic.

Government’s Strategy for Economic Growth

Despite the grim realities on the ground, Edun insists that several key factors will drive economic growth. He pointed to a stronger revenue performance, which he believes will boost government finances, as well as increased oil production as outlined in the 2024 and 2025 budget estimates.

The minister also emphasized that savings from the removal of fuel subsidies will help fund critical projects and stabilize government finances. But many analysts argue that the impact of subsidy removal has largely been negative for the average Nigerian, as it has led to skyrocketing fuel prices, increased transportation costs, and higher inflation across all sectors.

Edun stressed that creating a conducive environment for private-sector investment remains a priority. The government, he said, recognizes that Nigeria’s $100 billion annual infrastructure deficit cannot be addressed through public funds alone and must involve private capital. He highlighted recent Federal Executive Council (FEC) decisions, which he said had removed bureaucratic bottlenecks to allow private sector-led projects, such as the construction and management of the Benin-Asaba Highway and the Lagos-Abeokuta Road under public-private partnerships (PPPs).

These projects, he claimed, would lead to a 75% reduction in travel time, improving productivity and economic efficiency.

However, many business owners remain skeptical about the government’s reliance on the private sector to drive economic recovery when millions of businesses are shutting down due to unbearable operational costs, foreign exchange instability, and declining consumer purchasing power. The manufacturing sector, in particular, has been heavily affected by forex volatility, with many companies unable to import raw materials due to the Naira’s depreciation and dollar scarcity.

But Edun pointed to several positive macroeconomic indicators, including a stable exchange rate, a trade surplus equivalent to 13% of GDP, and foreign reserves exceeding $40 billion. He attributed these improvements to the Central Bank of Nigeria’s efforts to stabilize the foreign exchange market and enhance fiscal transparency.

He also revealed that the government has adjusted its budget funding structure, shifting away from 80% domestic financing to a more balanced mix of 40% domestic, 40% foreign, and 20% from other sources. This approach, he explained, would free up domestic credit markets, allowing the private sector greater access to funding, which could encourage more investments.

While Edun speaks of a stable exchange rate, the Naira continues to weaken, hovering above N1,500 per dollar, making imports more expensive and pushing inflation higher. The cost of diesel and electricity tariffs has surged, further increasing production costs for businesses already struggling to stay afloat.

Against this backdrop, many believe that the reality for Nigerian businesses does not align with the government’s optimistic projections. The NESG report on 7 million MSME closures in 2023 and 2024 underscores the harsh economic climate that businesses are facing.

MSMEs are particularly vulnerable because they rely heavily on local markets, informal lending, and domestic supply chains, all of which have been severely impacted by the government’s economic policies. With high interest rates, businesses are unable to access loans, and with rising production costs, many cannot break even, forcing them to close down or downsize their workforce.

Can Policy Reforms Reverse the Decline?

In January 2024, Edun claimed that the government’s economic reforms had stabilized Nigeria’s economy, reclaiming 5% of GDP lost to inefficiencies within government agencies. Speaking to Bloomberg at the World Economic Forum (WEF) in Davos, he cited the removal of wasteful subsidies, market-driven pricing for petroleum products and foreign exchange, and fiscal transparency as major achievements.

To achieve meaningful growth, the government has been advised to go beyond macroeconomic projections and address key structural challenges, including the high cost of doing business, forex instability, and inflationary pressures. Experts have warned that without addressing these structural challenges, Nigeria may find itself heading toward an even deeper economic crisis in 2025, rather than the transformational growth that Edun envisions.