Following a significant decline in Tesla’s stock value, President Donald Trump expressed his support for his advisor, billionaire Elon Musk, by announcing his intention to purchase one of Musk’s cars on Tuesday. Tesla has faced challenges this year from competing electric vehicle brands, particularly from China, in addition to its association with Trump and various far-right causes worldwide. Shares have dropped by 45% in 2025, hitting a low of $222.15 on Monday, reflecting a growing sense of pessimism amid declining sales globally.
In a post on his Truth Social platform, Trump commended Musk for his efforts to benefit the country, accusing “Radical Left Lunatics” of conspiring to boycott Tesla illegally. The stock saw a modest increase of over 3% before the market opened on Tuesday. Industry analysts attribute Tesla’s recent stock decline and sales slump to Musk’s political affiliations with Trump and other far-right figures internationally.
Tesla has faced protests at its U.S. showrooms and instances of vandalism on its vehicles, prompting some owners to display bumper stickers distancing themselves from Musk’s political leanings. Legal action has been taken against an individual for vandalism at a Colorado Tesla dealership. Musk’s support for Trump’s re-election campaign and association with his administration’s downsizing efforts have further impacted Tesla’s image among potential buyers.
The company’s sales have dropped significantly in key markets like California and Europe, with a noticeable decline in China attributed to heightened competition from local electric vehicle manufacturers. In the U.S., sales have been affected by market competition and polarization surrounding Trump’s policies. Analysts project Tesla deliveries to decrease by 5% in the first quarter and full year of 2025 compared to the previous year, citing signs of weakening demand based on delivery times for popular models.
In addition to his political stances, Musk has expressed support for controversial parties and leaders, contributing to Tesla’s challenges in various markets.
Recently, Tesla faced challenges and was criticized as “not a real country.” However, this was not the only setback for companies led by Elon Musk. The X social media platform experienced multiple crashes on Monday, reportedly due to a significant cyberattack. In a move akin to his reduction of federal jobs, Musk also downsized the staff at X, leading to concerns about heightened security risks. Additionally, SpaceX, another venture of Musk’s, encountered difficulties when a rocket launch resulted in an explosion over Florida, following a previous rocket failure just two months prior.
