In a striking event at the White House, President Donald Trump, alongside Tesla CEO Elon Musk, turned a press conference into an impromptu showcase of Tesla vehicles, against a backdrop of declining Tesla stock prices. This event comes as Tesla shares have been plummeting since the start of the year, attributed to Musk’s growing political engagements and a sharp fall in European sales.
The event, held on the South Lawn, featured a lineup of Tesla’s latest models, including the Model Y, Cybertruck, and Model S. Trump’s presence and public endorsement of Tesla seemed to inject some confidence into the market, as the company’s shares rose by 3.8% that day, partially recovering from earlier losses.
Amid this backdrop, Trump made a bold move by publicly supporting Musk and Tesla. He announced his intent to purchase a Tesla, claiming to have already bought a Cybertruck for his granddaughter. Trump remarked, “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.” This statement came amid rising protests against Tesla, both violent and nonviolent, across the nation.
Interestingly, Trump’s promotion of Tesla at the White House coincided with his promise to designate any violence against Tesla dealerships as domestic terrorism. Holding notes with vehicle pricing information, Trump appeared to be directly marketing Tesla’s affordability, noting that “Teslas can be purchased as low as $299/month or $35k.”
Despite the political theater, analysts remain divided on Tesla’s future. While some see Musk’s involvement with the Trump administration as entangling the company in political controversies, others remain optimistic about Tesla’s technological edge and market potential. A Wedbush Securities note highlighted concerns about potential brand damage if Musk continues to prioritize political engagements over Tesla’s core business.
Nevertheless, some investors perceive the dip in Tesla shares as a buying opportunity, encouraged by the company’s innovation and long-term prospects. The recent fluctuations in Tesla’s stock reflect broader market dynamics influenced by Musk’s prominent political role and Trump’s policy stances, including tariff threats that have contributed to market volatility.
Trump’s remarks also highlighted the intertwined relationship between Musk’s businesses and the federal government. Musk had seen significant financial gains post-2024 election as investors anticipated deregulation favorable to Tesla. However, Tesla’s market performance has faced setbacks due to policy uncertainties and Musk’s controversial public profile.
The staging of Tesla vehicles on the White House South Lawn serves as a vivid example of how closely business and politics have become intertwined in recent times. As investors navigate the volatile market influenced by political dynamics, Tesla’s future remains a topic of keen interest and speculation, with optimism about its innovation tempered by concerns over its leadership’s political engagements.
