Trump shows support for Musk as Tesla shares fall in value
The President chose a new car outside the White House
When you consider some of the shocking events that have taken place at the White House in recent weeks, the sight of Donald Trump being shown a fleet of Teslas by Elon Musk doesn’t rank too highly. Bizarre perhaps, but symptomatic of Trump’s second term as President.
Elon Musk was heavily involved in Trump’s election campaign, often seen at rallies and even giving the odd speech of his own. The world’s richest man is the owner of SpaceX, Tesla and Twitter (now known as X), which provided a crucial platform for Trump’s message to get across to the masses.
Following Trump’s victory, Musk has acted as his senior advisor and heads the newly formed Department of Government Efficiency (DOGE). Tasked with reducing spending within government, the department has made cuts to federal workforce and cancelled international aid, with Musk himself voicing his worldwide political opinions on X to his 219 million followers.
Protests and Tesla stock
Musk’s political influence has led to protests across America targeting his Tesla brand.
Demonstrators have gathered outside dealerships in Portland and New York City to instigate “Tesla takedown” protests to undermine the brand. While many have been peaceful, some have become destructive, leading to fires in fires at dealerships and charging stations in Colorado and Massachusetts last week. Trump has labelled such acts as “domestic terrorism”.
Tesla has borne the brunt of protests against Musk, causing the company’s stock price to halve in value since the start of the year.
Now Trump has stepped in, showing public support for Musk in front of the world’s cameras by choosing a Tesla for himself and calling for Americans to support “Elon’s baby”.
What did Trump go for?
Faced with a fleet of Teslas, including a Cybertruck, Trump emphatically chose a red Model S and while sitting inside the vehicle, declared that “everything is computer”. The 47th President sat in the driver’s seat with Musk as a passenger.
He won’t ever get to be behind the wheel of his new purchase, however, as current and former presidents are not allowed to drive for security reasons. Trump confirmed the car would be used instead by White House staff.
Will Trump’s support for Tesla turn the tide for the brand? According to the European Automobile Manufacturers' Association (ACEA), sales in Europe are 45% down in January compared to the same month in 2024.
There has also been a similar decline in China and Australia, and there are warnings that new Tesla deliveries could be much lower than expected this year.
Economic tariffs created by Trump have also shaken confidence in investors, leading to a wider US market slump on Monday.
words: Mike Booth
pictures: Sky News