US President Donald Trump has declared he's looking to purchase a new Tesla, following a sharp decline in the company's stock price.
Tesla shares fell more than 15% on Monday, wiping out gains since Election Day, as concerns over production targets and declining global sales mounted.
What Did Trump Say?
Trump used his Truth Platform to express his support for Tesla CEO Elon Musk, stating that "radical left lunatics" are conducting an "illegal and collusive" boycott against the electric vehicle manufacturer in an attempt to harm Musk's reputation and businesses. "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 announced.
Why Is Tesla on the Decline?
Despite Trump's claims, economists believe that economic realities rather than political attacks are the primary cause of Tesla's stock decline.
Investors have been increasingly worried about Tesla's ability to achieve delivery targets, particularly in major areas like Europe and China, where sales have fallen dramatically over the last year.
A recent UBS report warned that Tesla's vehicle deliveries could be far fewer than expected, adding to investor concern.
Trump's economic initiatives, like tariffs on car parts coming from Canada and Mexico, have contributed to market instability by raising concerns about production costs and supply chain disruption.
Investors are concerned that these tariffs will have an impact on Tesla's profitability, as indicated by the company's Chief Financial Officer, Vaibhav Taneja.
Musk Has His Eyes Elsewhere?
Adding to Musk's challenges, his leadership in the newly formed Department of Government Efficiency (DOGE) has drawn both praise and criticism.
While supporters see it as an effort to cut government waste, many say that it's an abuse of power.
Musk's increased political activity has sparked criticism, with protesters attacking Tesla dealerships and charging stations. Recent incidents include a Tesla charging station set on fire in Boston and gunfire at a dealership in Oregon.
Musk, who spent the weekend with Trump at Mar-a-Lago, responded to the stock decline by reassuring investors on X that "it will be fine long-term."
Meanwhile, Trump's strong vocal support may boost Tesla's popularity among conservative consumers, but whether it will ease investor concerns remains unknown.