Following one of the worst single-day sell-offs in Tesla’s history, President Donald Trump expressed support for billionaire Elon Musk, pledging to buy one of his cars. Tesla has faced intense competition from rival electric vehicles, especially from China, alongside its close association with Trump and far-right causes globally. Shares have plummeted 45% in 2025, reflecting global sales declines. Trump defended Musk on his Truth Social platform, accusing the ‘Radical Left’ of attempting to boycott Tesla. The stock climbed over 3% before the market opened. Analysts attribute Tesla’s recent struggles to Musk’s political alignments, which have led to protests and vandalism against Tesla showrooms. Musk invested $270 million into Trump’s 2024 campaign and appeared alongside him during events. Despite initial stock surges post-election, Tesla has lost 45% of its value since mid-December. Musk’s involvement in the Department of Government Efficiency (DOGE) has raised concerns among potential buyers, impacting sales in key markets like California and Europe. UBS analysts predict a 5% drop in deliveries for Q1 2025. Musk’s controversial statements and support for far-right groups have further strained Tesla’s brand image. Other Musk-led ventures, such as SpaceX and X, have also encountered setbacks. — news from The Associated Press
