US President Donald Trump announced Tuesday he plans to purchase a Tesla as a show of support for Elon Musk, despite the electric vehicle maker facing plunging share values and protests.
Trump made the unexpected statement on his Truth Social platform, despite his long-standing opposition to electric vehicles.
“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,” Trump wrote.
The president praised Musk, who heads his newly created Department of Government Efficiency, saying the Tesla CEO was “putting it on the line” for the country and doing a “fantastic” job.
One of Trump’s first presidential actions was revoking an executive order signed by former President Joe Biden that targeted 50% of new US vehicle sales being electric by 2030.
Tesla has encountered significant challenges since Musk endorsed Trump’s campaign and accepted a role in the administration.
The EV maker’s shares initially rose after Trump’s election victory but dropped 15% on Monday. Investors worry that Trump’s trade policies and government spending cuts could trigger a recession.
Tesla stock has lost half its value over the past year as the company battles declining sales and profits amid increasing competition.
Musk’s recent behavior has sparked controversy. During Trump’s inauguration, he appeared to give a Nazi salute, and he told supporters of Germany’s far-right AfD party their country should “move on” from “past guilt.”
These actions have prompted protests at Tesla dealerships across the US. In Portland, Oregon, approximately 350 people demonstrated against Musk.
The controversy appears to be affecting Tesla globally. A recent survey found 59% of British drivers were deterred from purchasing a Tesla due to Musk’s involvement.
In Germany, where EV sales have generally declined, Tesla experienced a 76% year-on-year sales drop in February.
Investors have expressed concern that Musk’s government role and management of his X social media platform are distracting him from Tesla’s operations during a critical period of sales challenges and increasing competition from Chinese and European manufacturers.
