Trump Vows to Buy Tesla Amidst Stock Slump, Blames ‘Radical Left’

US President Donald Trump has announced that he will “buy a brand new Tesla” after shares in the electric vehicle company dropped more than 15%.

Trump attributed the significant stock fall to “radical left lunatics” boycotting the company and attempting to “attack and harm” Tesla’s owner, Elon Musk.

However, stock analysts pointed out that the major reason for Tesla’s slump was linked to fears over the company’s ability to meet its production targets and a noticeable decline in sales over the past year.

Additionally, Trump’s own economic policies, particularly his tariffs, have sparked concerns among investors.

The US stock market took a hit on Monday, with many investors selling off their shares in response to Trump’s comments about a potential recession.

Trump mentioned that the US economy was in a “period of transition” during a TV interview, which added to worries about an economic slowdown.

There is growing concern that Trump’s tariffs could push up prices and hurt growth, as companies may pass on higher costs to consumers.

Tesla’s stock price was part of a broader market downturn. On Monday, it dropped 15.4%, alongside other major technology firms, including Nvidia, Meta, Amazon, and Alphabet.

However, when US markets opened on Tuesday, Tesla’s shares managed to recover slightly, rising by 3.6%.

Trump responded to the slump by posting on his Truth Social platform, rallying his supporters to back Musk, who has faced backlash for his involvement in efforts to reduce federal government jobs.

Despite his support for Tesla, Trump’s policies have not been particularly favorable for electric vehicles.

His administration revoked an order by former President Joe Biden aimed at having half of all car sales be electric by 2030 and halted unspent government funds meant for charging stations.

Moreover, Trump’s tariffs on auto parts could further affect Tesla, as the company sources parts from Canada and Mexico, which are now subject to tariffs.

Tesla’s chief financial officer, Vaibhav Taneja, has warned that these tariffs could hurt the company’s profitability.

On Tuesday, Trump expressed his admiration for Musk, calling him a “truly great American.”

He went on to say, “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk.”

While Trump’s comments highlight his political backing for Musk, Tesla’s stock troubles are not just about politics.

Investment strategist Linsay James pointed out that the main issue lies in the hard numbers. Sales in key markets, including Europe and China, have drastically fallen over the past year, with European sales down 45% in January compared to the same time last year.

As Tesla faces increased competition from Chinese electric vehicle companies and concerns over Musk’s attention being divided between his ventures, including SpaceX and social media platform X, analysts remain cautious about the company’s future.

Despite these challenges, Trump’s continued support of Musk is unlikely to change the underlying economic pressures Tesla faces.