Former President Donald Trump has shown his support for Elon Musk amid growing controversy surrounding the billionaire's electric car company, Tesla. Trump praised Musk for "putting it on the line" to help the nation and described his efforts as "FANTASTIC." To demonstrate his backing, Trump announced his intention to purchase a new Tesla. He characterized Musk as "a truly great American" and shared his support on the social media platform @realDonaldTrump.
Despite Trump's endorsement, Tesla faces significant challenges. The company has been the target of allegations claiming that "Radical Left Lunatics" are organizing a boycott against it. Trump accused these opponents of "illegally and collusively" trying to harm Tesla and its leader, Musk. He emphasized that Tesla is "one of the World's great automakers," drawing parallels between Musk's struggles and his own experiences during the 2024 election. Trump's support for Musk has been closely monitored since January 2025, reflecting the intertwined nature of their public personas.
Tesla's stock performance has not been promising. Shares dropped over 14% after UBS revised its delivery projections. The stock has decreased more than 51% from its peak in December, pushing it below pre-Trump election levels. This decline is part of a broader trend linked to Trump's economic strategies, with the tech-heavy Nasdaq Composite itself dropping more than 3%. Additionally, Tesla is experiencing its longest negative streak since debuting on Nasdaq in 2010.
Musk's wealth has also been affected. His net worth plummeted by $139.4 billion from its peak, leaving him with approximately $324.6 billion. He remains the largest shareholder of Tesla, but he lost $18 billion in one day due to market fluctuations.
In addition to financial troubles, Tesla has faced protests and acts of vandalism across multiple U.S. cities. Demonstrators have aimed to make the Tesla brand "toxic." Some protesters even recognize Musk's role in fighting climate change.
As tensions rise, Musk must now collaborate with Cabinet secretaries on federal workforce cuts, which has led to more scrutiny of his authority.
