 "Tesla stocks falling, Trump says 'will buy brand new' car to back Musk's company")
US President Donald Trump said on Wednesday that he would buy a new Tesla to show his support for billionaire Elon Musk. He also praised Musk as “a truly great American.”
“To Republicans, Conservatives, and all great Americans, Elon Musk is ‘putting it on the line’ in order to help our Nation, and he is doing a FANTASTIC JOB! But the Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla, one of the world’s great automakers, and Elon’s ‘baby,’ in order to attack and do harm to Elon and everything he stands for," Trump wrote in a post on Truth Social.
Recently, Tesla’s stock has experienced significant declines, dropping nearly 50 per cent over the past three months.
This decrease has reduced Tesla’s market capitalisation from an all-time high of $1.5 trillion to $845 billion.
Musk in Washington, leading Doge
Several factors have contributed to this decline. Musk’s involvement in the Department of Government Efficiency (DOGE), which aims to reduce government expenditure, and the political controversies surrounding his support for President Donald Trump are said to be the major reasons.
This divided attention has led to dissatisfaction among stakeholders, with some analysts suggesting that senior management take on more responsibilities or even consider replacing Musk as CEO to refocus the brand and stabilise stock performance.
Massive fall in Tesla shares
Tesla has been experiencing a sharp decline since Musk’s involvement in Washington. On Monday, as the tech-focused Nasdaq dropped 4 per cent, Tesla’s stock fell 15 per cent—its biggest one-day decline since September 2020.
Impact Shorts
More ShortsTesla’s stock has dropped 55 per cent from its record high in mid-December and has fallen over 40 per cent this year.
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