U.S. President Donald Trump says he plans to buy a Tesla after the electric carmaker’s stock takes a steep 15% hit.
Trump blames the drop on what he calls “radical left lunatics” trying to sabotage Tesla and its CEO, Elon Musk, through an organized boycott. However, analysts point to a different story: Tesla’s real problems are slow sales, production delays, and growing competition, especially from Chinese EV makers.
A Rough Day for Tesla and Tech Stocks
Tesla wasn’t the only company struggling. The sell-off hit major tech firms across the board. Stocks for Nvidia, Meta (Facebook’s parent), Amazon, and Alphabet (Google’s parent) also declined. Market jitters over Trump’s tariff policies and his warning about a possible U.S. recession only added to the unease.
Trump’s Show of Support for Musk
Taking to Truth Social, Trump encouraged conservatives and his supporters to back Musk, calling him a “truly great American.” He also vowed to buy a Tesla personally as a sign of confidence.
“Elon is doing a fantastic job,” Trump posted. “But radical left lunatics are trying to illegally and collusively boycott Tesla to harm him. I’m going to buy a brand-new Tesla tomorrow morning as a sign of support.”
That statement gave Tesla a boost. The stock rebounded 5% in early premarket trading, though it’s still far from its previous highs.
Musk’s Politics and Tesla’s Challenges
Once known for his apolitical stance, Musk has leaned further right in recent years, drawing mixed reactions. His unofficial role as head of what some call the “Department of Government Efficiency” (a non-existent agency aimed at cutting government spending) has only fueled debates.
Protests against Musk and Tesla have been popping up across the country. About 350 demonstrators gathered outside a Tesla dealership last week in Portland, Oregon. In March, nine people were arrested outside a Tesla showroom in New York City.
Is Politics Really Tesla’s Biggest Problem?
While Musk’s political moves have influenced Tesla’s brand perception, experts say they aren’t the main reason for the stock slump.
“The numbers tell the real story,” said Linsay James, an investment strategist at Quilter Investors. “Tesla’s new orders, particularly in Europe and China, have effectively halved over the past year.”
Market analysts have long warned that Tesla’s stock was overvalued, and this latest drop may be a market correction. Meanwhile, Chinese EV makers continue to ramp up competition, making Tesla’s future even more uncertain.
So, will Trump’s Tesla purchase actually make a difference? Probably not. But it adds another twist to the ongoing drama between politics, business, and the ever-changing EV market.
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