Tesla’s shares experienced a sharp decline of approximately 15% recently, contributing to a total loss of over 50% since their peak in December 2022. This downturn is attributed to concerns about falling vehicle sales, reduced profits, and Musk’s involvement in political activities, particularly his role in implementing substantial federal workforce reductions.
In response to these challenges, Trump took to his social media platform, Truth Social, stating: “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.” He praised Musk for “putting it on the line” to assist the nation and commended his performance as “fantastic.”
Musk expressed gratitude for the president’s support on his own social media platform, X.
The backdrop to this development includes protests against Tesla across the United States, with demonstrators opposing Musk’s political involvement and the associated government cuts. Notably, about 350 people protested outside a Tesla dealership in Portland, Oregon, and nine individuals were arrested during a demonstration at a New York City Tesla dealership earlier in March.
Additionally, some Tesla owners have reported vandalism of their vehicles, prompting them to remove or cover Tesla logos to avoid being targeted.
This situation underscores the complex interplay between corporate leadership, political engagement, and public perception, highlighting the challenges that can arise when business leaders take on prominent governmental roles.