As Trump poses with Teslas in front of the White House, the company’s slumping stock climbs
It was an extraordinary scene at the White House South Lawn Tuesday. President Donald Trump effectively held a combination press conference and live Tesla ad outside the White House, accompanied by the company’s CEO and Department of Government Efficiency Head Elon Musk – all in front of a line of shiny Tesla vehicles.
The scene was all the more remarkable because Tesla shares have been in a sharp slump recently, erasing all their gains since Election Day as Musk’s increasing political profile and moves to slash the federal government have drawn a major backlash and Europe sales decline.
Tesla stock climbed on Tuesday, with Trump saying that he would label any violence against Tesla dealerships as domestic terrorism. As he spoke, Trump was holding what resembled a Tesla showroom pitch with a list of vehicle prices, according to Getty Images. “Teslas can be purchased as low as $299/month or $35k,” the note said.
It’s another sign of how integrated Musk’s businesses are with the US government as his alliance with Trump pushes his ventures to the forefront. And as Tesla stock flounders, the president seems to have taken it upon himself to encourage sales of the electric vehicles.
Tesla shares closed up 3.8% Tuesday, regaining some ground from Monday’s losses.
At the White House Tuesday, Trump said he would buy a Tesla and that he had bought a Cybertruck for his granddaughter.
“I think (Musk has) been treated very unfairly by a very small group of people, and I just want people to know that he can’t be penalized for being a patriot,” Trump said, as protests both violent and nonviolent have risen across the country against Tesla and Musk.
Trump had posted on Truth Social overnight he was “going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” calling boycotts against the company illegal.
Musk had never been richer than in the immediate aftermath of the 2024 election, thanks to Tesla stock surges as investors bet Musk would influence the government to deregulate the electric vehicle market in ways that would benefit the company.
Instead, Trump’s tariff threats have sent the stock market looking like a roller coaster, and on Monday, Tesla lost 15% of its value. Its stock was down almost 45% this year, wiping out all of its gains since November.
That’s due to slumping sales in Europe as well as Musk’s outsized role in Trump’s administration.
“The DOGE efforts has now intertwined Tesla into this brewing political firestorm,” an analyst note from Wedbush Securities said Tuesday. “If Musk continues to head down the DOGE path 110% and showing no attention to Tesla during this turbulent time then brand damage will become more pervasive.”
But some analysts still remain optimistic on Tesla. Wedbush said in a note Tuesday it was still bullish on Tesla’s innovation and technology outlook and expected only 5% of Tesla owners to second guess buying a Tesla again due to Musk. And other analysts saw the dip in Tesla shares as a buying opportunity.
Trump had said he would buy the Tesla full price.
“I don’t want a discount,” Trump said. “(Musk) would give me discount, but if I do a discount, they’re gonna say, ‘Oh, I got benefits.’”
