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.”
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“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.