Trump Supports Musk Amid Challenges for Tesla
NEW YORK — President Donald Trump surprised many on social media Thursday by expressing support for Elon Musk’s Tesla, despite their recent differences. In a post on Truth Social, Trump stated, “I want Elon, and all businesses within our Country, to THRIVE.”
However, this public support didn’t help Tesla’s stock price, which fell sharply after Musk announced disappointing financial results. Tesla reported a 12% drop in revenue and a 16% decline in profit for the April to June quarter. These challenges have worsened as Musk’s political engagements have led some potential customers to hesitate, particularly in market-heavy regions like Europe and China.
Investor confidence remains shaky, especially with Trump’s earlier threats to reconsider government support for Musk’s various ventures, which could impact Tesla significantly. Yet Trump maintained a different stance on Thursday, insisting that he does not plan to harm Elon’s enterprises. “The better they do, the better the USA does, and that’s good for all of us,” he noted.
Following the enactment of Trump’s recent budget bill, Tesla could potentially lose a $7,500 electric vehicle tax credit, significantly affecting its profits from selling regulatory credits to other manufacturers. Additionally, tariffs imposed by Trump on countries like China and Mexico could cost Tesla hundreds of millions, as stated during the company’s earnings call.
Musk has been vocal about his concerns regarding the budget bill, describing it as adding unnecessary debt and labeling it a “disgusting abomination” on his platform X. He has even hinted at founding a new political party.
During a recent earnings call, Musk indicated that Tesla is entering a challenging period, forecasting “a few rough quarters” as the company shifts focus. He noted the transition from simply selling cars to providing ride-hailing services with self-driving technology. Moreover, he mentioned Tesla’s ambitions in humanoid robotics, although he admitted it would take time for these ventures to positively impact the company’s finances.
In June, Tesla began launching its paid robotaxi service in Austin, Texas, with plans to expand into more cities soon. Musk aims for this service to reach around “half of the population of the U.S. by the end of the year,” pending regulatory approvals.
Despite the current uncertainties, Musk remains optimistic, saying he would be “surprised if Tesla’s economics are not very compelling” once they achieve autonomy on a large scale next year.
