If the Trump administration pursues higher tariffs, it will risk retaliation and a potential global trade war. This could strengthen the dollar and push US bond yields higher. 
Special 
If the Trump administration pursues higher tariffs, it will risk retaliation and a potential global trade war. This could strengthen the dollar and push US bond yields higher. U.S. President Donald Trump announced on Tuesday that he will purchase a new Tesla, publicly throwing his support behind Elon Musk as the electric carmaker faces growing protests and a sharp decline in stock value.
“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 declared in a post on Truth Social.
The statement comes amid the “Tesla Takedown” protests, which have erupted in response to Musk’s role in the Trump administration’s federal workforce cuts. As the head of the Department of Government Efficiency (DOGE), Musk has been overseeing major layoffs, leading to public backlash against Tesla.
Last week, 350 demonstrators gathered outside a Tesla dealership in Portland, Oregon, while an earlier protest in New York City led to nine arrests. Critics argue that Musk’s political entanglements are distracting him from Tesla’s core business, raising concerns among investors.
Musk, however, welcomed Trump’s endorsement, thanking the president on his social media platform, X.
“Putting it on the line to help the country” is how Trump described Musk’s efforts, calling his work “fantastic.”
Tesla’s market capitalisation has plunged by more than half since hitting an all-time high of $1.5 trillion in December, erasing most of the stock’s gains from last year. The downturn has been fueled by:
• Declining vehicle sales and profits
• Public protests over Musk’s political activities
• Investor concerns that Musk is too politically engaged to focus on Tesla
Tesla’s struggles raise questions about how Musk will balance his government role, Tesla’s financial performance, and his broader business empire.
While Trump’s public backing could boost confidence among his supporters, the bigger challenge for Tesla remains its business fundamentals and shifting EV market dynamics. With competition from Chinese automakers and legacy car brands intensifying, Tesla will need more than political endorsements to regain stability.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today
