Washington: After one of the worst single day sell-offs in Tesla’s history, President Donald Trump threw his support behind his advisor, billionaire Elon Musk, vowing to buy one of his cars on Tuesday.
Tesla has been pummelled this year under competition from rival electric vehicles, particularly out of China, as well as his close association with Trump and with far right causes globally.
Shares have plummeted 45 per cent in 2025 and on Monday tumbled more than 15 per cent to USD 222.15, the lowest since late October, reflecting newfound pessimism as sales crater around the globe.
In an overnight post on his Truth Social platform, Trump said Musk is “putting it on the line” to help the country. Trump claimed in the post that “Radical Left Lunatics” were attempting to “illegally and collusively boycott Tesla, one of the World’s great automakers, and Elon’s baby”.
The stock climbed more than 3 per cent before the market open on Tuesday. Numerous auto industry analysts have attributed Tesla’s recent sagging stock — and auto sales — to Musk’s support of Trump and other far right candidates around the world. In recent days, Tesla showrooms in the US have been besieged by protesters, its vehicles vandalised on the street.
Tesla owners, perhaps in a bid to avoid being targeted, have placed bumper stickers on their cars with messages like, “I bought it before Elon went nuts”.
Federal prosecutors charged a woman in connection with a string of vandalism against a Colorado Tesla dealership, which included Molotov cocktails being thrown at vehicles and the words “Nazi cars” spray painted on the building.
Musk pumped USD 270 million into Trump’s campaign heading into the 2024 election, appeared on stage with him and cheered Trump’s victory over Democratic candidate Kamala Harris in November.
Tesla stock soared to USD 479 per share by mid-December, but have since lost 45 per cent of their value. Musk has become the face of the Trump administration’s slash-and-burn government downsizing efforts, known as the Department of Government Efficiency, or DOGE. The department has promised massive federal worker layoffs and aims to drastically reduce government spending.
Analysts have said Musk’s shift to right-wing politics doesn’t appear to sit well with potential Tesla buyers, generally perceived to be wealthy and progressive consumers.
Tesla sales are falling precipitously in California, the company’s biggest US market, and the company recorded its first annual global sales decline last year. Similarly, Tesla sales plunged 45 per cent in Europe in January, according to research firm Jato Dynamics, even as overall electric vehicle sales rose. The sales numbers were particularly bad in Germany and France.
The latest auto sales figure from China show that Tesla sales there have been nearly halved from February a year ago, although the decline is largely due increased competition from domestic EV companies. But sales in the US have fallen due to competition, and a country sharply divided about Trump.
US Analysts at UBS Global Research expect deliveries to fall 5 per cent in the first quarter and full year compared to the same periods for 2024.
“Our UBS Evidence Lab data shows low delivery times for the Model 3 and Model Y (generally within two weeks) in key markets which we believe is indicative of softer demand,” they wrote.
In addition to backing Trump, Musk has also shown support for the far-right, pro-Russian, anti-Muslim party in German y, called the British p rime minister an “evil tyrant” and called Canada — a major Tesla market —”not a real country”.
Tesla is not the only Musk-led company to run into trouble recently. His X social media platform crashed several times on Monday, which Musk claimed was a “massive” cyberattack. But like the clear-cutting he’s done with federal jobs, Musk slashed the number of employees at X and technology experts warned of increased vulnerability.
Last week, a rocket launched by Musk’s SpaceX exploded and broke apart over Florida, about two months after another of the company’s rockets failed.
