Washington, D.C. – President Donald Trump came out in strong support of Tesla and its CEO, Elon Musk, during a White House media event on Tuesday, labeling protesters against the company as “domestic terrorists.” The remarks were made as Trump sat inside a brand-new red Tesla Model-S, which he announced he planned to purchase, though he clarified that he would not be able to drive it due to security restrictions.
Tesla’s Stock Collapse: Political Backlash or Market Fears?
Tesla (NASDAQ: TSLA) has seen its stock price tumble more than 50% from its all-time high in December, which it reached following Trump’s election victory. As of Tuesday, March 11, Tesla closed at $231 per share. The question remains: Is this decline fueled by Musk’s controversial political activity, or is it the result of growing fears of further sales declines?
Some have speculated that boycotts from left-wing activists, whom Trump labeled as “radical left lunatics,” are playing a role. However, others argue that the primary driver of Tesla’s decline is a worrying slowdown in sales across global markets.
Falling Sales Signal Trouble for Tesla
The price has regained about 6.5% since Monday after Trump promised to buy a new Tesla. But that won’t do much to offset a global sales slump.
Tesla sold about 7,500 vehicles in Europe in January, about half of what it sold in January last year. This comes as tightening EU emissions rules have boosted hybrid and electric vehicle (EV) sales overall. Germany, the EU’s biggest auto market, saw total EV sales rise 30% in February compared to the same month last year—while Tesla’s sales in the country fell more than 70%.
Sales are also declining in China, Australia, and other global markets, painting a grim picture for Tesla’s growth outlook.
Meanwhile, NIO Inc. (NYSE: NIO), a key Tesla competitor, has seen a 29% surge in the past month, including a 17% single-day rise on March 11. However, despite this recent jump, NIO’s stock still lags behind Tesla’s long-term performance, as it peaked back in 2021.
Trump and Musk Unite in Tesla Promotion
The high-profile event at the White House showcased Tesla’s latest models. Musk, who sat in the passenger seat next to Trump, has been an influential figure in the current administration, serving as head of the newly established Department of Government Efficiency (Doge). The billionaire entrepreneur has been responsible for implementing deep federal spending cuts, leading to significant opposition from various groups.
Despite Tesla’s recent stock turmoil, Trump praised the automaker, stating, “Tesla is a great American company, and these protesters are trying to harm it. Anyone using violence against Tesla will go through hell.”
Tesla Protests Escalate Amid Musk’s Political Role
Demonstrators have been actively targeting Tesla showrooms in response to Musk’s drastic cost-cutting measures and his vocal support for far-right politics. In recent weeks, “Tesla takedown” protests have been staged outside Tesla dealerships in Portland, Oregon, and New York City. While many of these demonstrations have remained peaceful, some have turned violent, with reports of fires deliberately set at Tesla showrooms and charging stations in Colorado and Massachusetts.
Protest organizers argue that Musk’s policies, particularly his cuts to the federal workforce and international aid programs, have had devastating consequences. Many former Tesla owners have taken to social media to express their disapproval, calling for boycotts and urging others to sell their Tesla vehicles.
Tesla’s Market Woes and Trump’s Public Support
Trump reassured Musk during the White House event, saying, “You know, Elon, I don’t like what’s happening to you, and Tesla’s a great company.”
Musk, Trump’s top donor in the current election campaign, has remained defiant in the face of backlash, continuing to push forward his cost-cutting agenda. His influence within the administration has sparked both admiration and outrage, with some seeing him as a visionary and others as a symbol of corporate-driven politics.
The Future of Tesla Amid Political Controversy
As protests persist, sales continue to slide, and Tesla’s stock remains volatile, Musk’s leadership and Trump’s endorsement will likely continue to fuel debates about the intersection of business and politics. While the president’s backing may bolster Tesla’s reputation among his supporters, growing public resistance and declining market performance suggest the company’s future could be shaped as much by politics as by its technological innovations.
