An unusual spectacle unfolded on the White House South Lawn on Tuesday, as President Donald Trump effectively turned a press conference into a live Tesla advertisement. Standing alongside Tesla CEO and Department of Government Efficiency Head Elon Musk, Trump addressed the media in front of a lineup of gleaming Tesla vehicles.
The event was particularly striking given Tesla’s recent stock struggles, with shares plummeting since Election Day amid backlash over Musk’s growing political involvement, federal budget cuts, and declining sales in Europe.
Despite this, Tesla stock saw a boost on Tuesday as Trump vowed to classify any violence against Tesla dealerships as domestic terrorism. Holding what appeared to be a sales pitch sheet with vehicle pricing, Trump highlighted Tesla’s affordability, with a note reading: *”Teslas can be purchased as low as $299/month or $35K,”* according to Getty Images.
Elon Musk’s deep ties to the U.S. government were on full display Tuesday, as President Donald Trump continued to champion Tesla amid its recent stock struggles. With shares floundering, Trump has taken it upon himself to boost confidence in the electric vehicle giant, even declaring his own plans to buy a Tesla.
Tesla stock closed up 3.8% on Tuesday, recovering some of its steep losses from the previous day. Speaking from the White House, Trump revealed he had already purchased a Cybertruck for his granddaughter and defended Musk against growing protests targeting Tesla.
“I think he’s been treated very unfairly by a very small group of people, and I just want people to know he can’t be penalized for being a patriot,” Trump said, addressing the wave of demonstrations—both violent and nonviolent—against Musk and his company.
The night before, Trump had taken to Truth Social, announcing: *“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.”* He also condemned the ongoing Tesla boycotts, calling them illegal.
Musk was at his financial peak in the immediate aftermath of the 2024 election, as Tesla’s stock soared on investor expectations that his influence within the administration would lead to electric vehicle deregulation. However, Trump’s tariff threats have since sent the market into turmoil. On Monday, Tesla shares plunged 15%, bringing its total losses for the year to nearly 45%, erasing all post-election gains.
Wedbush Securities analysts pointed to Tesla’s declining European sales and Musk’s growing role in the administration as key factors in the stock’s volatility. *“The Department of Government Efficiency (DOGE) efforts have now intertwined Tesla into this brewing political firestorm,”* Wedbush wrote in a note Tuesday. *“If Musk continues to go all-in on DOGE and neglect Tesla during this turbulent time, brand damage will become more pervasive.”*
Despite concerns, some analysts remain bullish on Tesla’s long-term prospects, citing its technological innovation. Wedbush estimated that only 5% of Tesla owners would reconsider purchasing a vehicle due to Musk’s political involvement, while others viewed the stock’s dip as a prime buying opportunity.
As for Trump, he made it clear he would be paying full price for his Tesla purchase. *“I don’t want a discount,”* he said. *“Elon would give me one, but if I take it, they’ll say I got special treatment.”*
