Trump Comes to Elon Musk’s Aid as Tesla Stock Takes a Dive

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WASHINGTON – Donald Trump expressed interest in a shiny red vehicle.

“I want the same color,” he noted as he pointed to a Tesla Model S before taking a seat in the driver’s position.

The president didn’t visit a Tesla dealership but instead transformed the White House into a showcase for the electric car maker, receiving five models which were lined up in the driveway around the South Lawn.

This event was not merely about a presidential car purchase—it was a carefully orchestrated scene to alleviate the backlash directed towards Tesla and its owner, Elon Musk, who is spearheading Trump’s initiative to reduce federal personnel.

Musk, along with the Department of Government Efficiency, which he oversees, has demolished entire federal agencies. Thousands of government employees have lost their jobs, although some have been reinstated due to court rulings deeming their termination illegal.

In response, frustrated citizens demonstrated violence and vandalism at Tesla dealerships nationwide, with incidents of arson, windshield destruction, and red X’s painted on vehicles. Some Tesla owners displayed bumper stickers stating: “I Bought This Before We Knew Elon was Crazy!”

Trump and his staff have intervened to assist Musk and Tesla in navigating these challenges and to uplift the company’s declining stock value, raising ethical and legal questions about an administration actively aiding a business owned by its primary financial supporter.

“This is unprecedented,” stated Richard Painter, who served as the White House ethics chief under President George W. Bush. “I’ve never witnessed the U.S. government endorsing a specific company.”

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Trump purchases a Tesla amid stock declines

President Donald Trump acquired a Tesla as a show of support for Elon Musk, stating it would be used at the White House.

Musk’s simultaneous roles as a businessman and government efficiency advocate have led to worries about conflicts of interest.

Musk has secured billions in government contracts, grants, and tax incentives. Through DOGE, he has sought to diminish or eliminate government entities that regulate or scrutinize his businesses.

On a different note, Musk was scheduled to receive a briefing from the Pentagon regarding potential military engagements with China, as reported by the New York Times. Musk, as CEO of both Tesla and SpaceX, has contracts with the Pentagon and vested interests in China.

Trump rebutted this claim, asserting to reporters that he did not wish to divulge the Pentagon’s strategies to anyone, particularly someone with Musk’s commercial connections in China.

During Tesla’s exhibition at the South Lawn last week, Trump stood alongside Musk and asserted that the billionaire was being unduly targeted. “He can’t be penalized for being a patriot,” Trump remarked.

When asked if his Tesla purchase might uplift the company’s stock and sales, Trump replied, “I hope it does.”

Commerce Secretary Howard Lutnick further encouraged Americans to invest in Tesla stock, stating on Fox News, “It’s unbelievable that this guy’s stock is this cheap. It’ll never be this affordable again.” Tesla shares experienced a 5% increase on Friday, although still recorded a loss for the ninth consecutive week.

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Tesla’s stock has lost nearly half of its value within three months, losing most of the gains achieved post-U.S. elections last year, when CEO Elon Musk contributed to Trump’s victory.

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The Justice Department also came to Musk’s aid on Thursday, carrying through on a promise to prosecute those who vandalize Tesla dealerships. Federal agents charged three individuals accused of using Molotov cocktails to ignite fires at Tesla vehicles and charging stations.

Attorney General Pam Bondi warned: “If you participate in this domestic terrorism wave against Tesla properties,” she declared, “the Department of Justice will ensure you face consequences.”

The White House defended its actions in favor of Musk and his enterprise, hitting back at Tesla detractors like Minnesota Governor Tim Walz, who is the 2024 Democratic candidate for vice president. Walz mentioned in Wisconsin last Tuesday that he often feels a sense of “joy” from Tesla’s falling stock prices.

“While irrational Democrats like Tim Walz publicly wish for the downfall of an iconic American corporation employing tens of thousands, the Trump administration is focused on fostering prosperity for all our businesses, industries, and workforce,” stated White House spokesperson Kush Desai.

Government watchdogs contend that the administration’s actions represent clear violations of ethical rules.

“Employing public service for personal gain is forbidden for all in the executive branch,” Painter asserted, referencing the Code of Federal Regulations.

“We can debate whether the president is strictly beholden to that standard, but everyone else is, including the Commerce Secretary,” Painter noted. “You cannot leverage your position to promote any private organization, company, or nonprofit. Such actions are simply impermissible.”

Citizens for Responsibility and Ethics in Washington, an organization dedicated to revealing ethical breaches and government corruption, also expressed alarm at the administration’s support for Musk.

“It certainly appears as though the White House is favoring a specific business and attempting to orchestrate outcomes for a company predominantly owned and managed by a member of the administration,” remarked Jordan Libowitz, spokesman for the group.

Biden and the Big Three

Trump’s supporters argue that former President Joe Biden also held a White House event in 2021 to advocate for electric vehicles. Biden was flanked on the South Lawn by CEOs from Ford, General Motors, and Stellantis, the parent company of Chrysler, along with leaders from the United Auto Workers union.

During that gathering, Biden signed an executive order establishing a goal for zero-emission vehicles to represent half of all cars sold in the United States by 2030. He then test-drove an electric Jeep Wrangler Rubicon 4xE, an event captured on video that spread across social media.

The 2021 Tesla snub

Musk and Tesla were not included in Biden’s event—an omission that reportedly upset Musk, prompting him to switch his party affiliation from Democrat to Republican the following year.

However, Painter argues that Biden’s auto show differed from Trump’s event since it promoted electric vehicles broadly rather than advancing a specific company.

While the government has stepped in to rescue specific automakers during financial crises—like Chrysler in 1979 and General Motors and Chrysler in 2008—Painter emphasizes that never before has the executive branch promoted one particular company as Trump and his administration have done for Tesla.

“Henry Ford never received governmental endorsement promoting his vehicles,” referenced Painter, now a law professor at the University of Minnesota. “He dabbled in politics, but the government refrained from endorsing his cars over those of General Motors. That is not the American way.”

‘More harm than good’

Trump’s initiative to stabilize Tesla seems to be counterproductive, according to Daniel Ives, a financial analyst and technology expert at Wedbush Securities, based in Los Angeles.

“It has caused more detriment than benefit, as investors do not want Tesla to embody a political statement,” Ives commented.

Due to Musk’s links with DOGE and his affiliations with Trump, the perception of Tesla has shifted for many to that of a political emblem, fueling demonstrations and violent incidents directed at Tesla dealers and owners, according to Ives.

The tense political atmosphere is also negatively impacting Tesla’s financial health.

This year, Tesla’s stock has diminished by over 40%. Although Trump acquiring a Tesla on the White House grounds might appear as effective political performance, as Ives stated in a company report on Wednesday, it is unlikely to mend the brand’s current crisis.

“Only one person can resolve this,” Ives remarked in an interview. “It’s not Trump. It’s not Lutnick. It’s Musk.”

Ives emphasized that Musk needs to step back from DOGE and refocus on leading Tesla.

“He’s not a politician,” he concluded. “He’s the CEO of Tesla, in addition to his various other roles. He must ensure that the damage to the brand does not become irreversible.”

Follow Michael Collins on X @mcollinsNEWS.