U.S. President Donald Trump’s unexpected show of support for Elon Musk’s Tesla comes as the EV maker faces revenue declines, profit drops, and mounting market pressures.
Tesla’s stock dropped nearly 9% today despite an unexpected endorsement from U.S. President Donald Trump, who voiced his support for Elon Musk’s electric vehicle company amidst ongoing financial turbulence.
“I want Elon, and all businesses within our Country, to thrive,” Trump posted on his social platform, signaling a shift in tone after recent policy tensions that rattled investors.
Tesla reported a 12% revenue decline and a 16% profit drop for the April-June quarter, with CEO Elon Musk warning of potentially “rough quarters” ahead. The company is grappling with reduced EV tax credits following the recent U.S. budget bill and intensified competition in Europe and China.
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Investor sentiment has also been shaken by concerns over tariffs on imports from China and Mexico, potentially costing Tesla hundreds of millions of dollars. Musk, while criticizing the fiscal policies, emphasized Tesla’s long-term focus on autonomous driving and its growing robotaxi operations in the United States, aiming to expand to half the population by the end of the year.
Despite the challenges, financial experts believe Tesla’s ongoing investments in AI-driven mobility and humanoid robotics could secure its leadership position once macroeconomic headwinds ease. Trump’s statement, which clarified that he has no intention of withdrawing government support for Tesla, may offer temporary reassurance to markets.
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