The staggering increase in Tesla’s stock value after Donald Trump transformed the White House lawn into a Tesla showroom has left many in awe.
Tesla stock rebounds after a historic drop
Tesla’s stock has seen a surprising increase after Donald Trump and Elon Musk turned the White House lawn into a Tesla showroom.
The move followed a period of severe stock declines, raising questions about the impact of political support on Tesla’s future.
President Donald Trump, once a critic of electric vehicles, now appears to be a strong supporter of Tesla.
On Tuesday, he transformed the South Lawn into a Tesla exhibition, displaying multiple models, including the Cybertruck.
Trump even purchased a red Tesla Model S, signaling his endorsement of Elon Musk’s company.
Despite past skepticism, Trump’s backing comes at a critical moment for Tesla.
The president defended the company against recent backlash, which included calls for a boycott and vandalism targeting Tesla vehicles and charging stations.
Additionally, authorities in Oregon confirmed that a Tesla dealership was damaged by gunfire during a protest.
Tesla’s financial struggles and recent rebound
Tesla has faced significant financial losses in recent months.
On March 10, the company’s stock dropped by $127 billion in a single day.
Since December 2024, Tesla shares have fallen by 50%, losing its trillion-dollar valuation.
The decline coincided with Trump’s inauguration and Musk’s appointment to a key advisory role within the administration.
However, Tesla’s stock has shown signs of recovery. In the last 24 hours, shares have risen by 3.79%, indicating a potential turnaround.
Musk’s bold promise for Tesla’s future
At the White House event, Musk expressed optimism about Tesla’s future.
He announced, “As a function of the great policies of President Trump and his administration, and as an act of faith in America,
While, Tesla is going to double vehicle output in the United States within the next two years.”
This statement has led analysts to speculate whether Tesla is on the path to recovery.
Adam Jonas, a Morgan Stanley analyst, advised investors to take advantage of the stock’s current dip.
Additionally, he cited key upcoming milestones, such as robotaxi testing in Austin and advancements in Tesla’s Optimus robot, as factors that could influence the company’s growth.
Concerns over Tesla’s association with Trump
Despite the recent stock surge, some analysts believe Tesla’s close ties to Trump could hurt its brand.
Dan Ives, a Wedbush Securities financial analyst, warned that aligning with the administration might alienate certain consumers.
Trump has dismissed concerns, stating that any boycott of Tesla would be “illegal,” though this claim has no legal basis. Regardless, both Trump and Musk appear committed to strengthening Tesla’s position in the market.
Tesla’s stock has seen a slight rebound, but its long-term stability remains uncertain.
Political endorsements, market trends, and technological advancements will determine whether the company can fully recover.
For now, Trump and Musk continue their efforts to “make Tesla great again.”