Trump's Tesla purchase: A bold move to boost Musk amid market dip
Donald Trump announced that he would buy a "brand new" Tesla. This move shows that the President of the USA wants to support Elon Musk, as the electric vehicle manufacturer's stock experienced its worst day in four years. On Monday, Tesla's stock price fell by 15 percent.
It was not a good Monday for Elon Musk. Tesla's stock plunged by 15 percent at the end of the day, and since the beginning of the year, it has dropped by more than 40 percent. Additionally, there was a failure of the social networking service X. Users had problems accessing the portal for most of the day, and Musk himself revealed that a cyberattack had occurred. According to the wealthiest man in the world, the attack was supposed to originate from IPs located in Ukraine. However, a group of hackers called Dark Storm, which has ties to Russia and supports Palestine, claimed responsibility for the attack.
Donald Trump noticed the problems of his close associate. He wrote on social media late at night that he would buy a new Tesla the following day (March 11 - editor's note) at approximately 11:00 a.m. Eastern Time, "as a sign of confidence and support for Elon Musk, a truly great American."
Trump wonders why Musk "should be punished for using his tremendous skills to help make America great again." According to the Republican, the boycott of Tesla is driven by "radical left-wing lunatics." Furthermore, Trump believes the boycott is illegal.
Bloomberg Agency reminds us that Musk spent nearly $300 million on Trump's campaign committee.
Tesla's stock plummeted
Tesla shares fell by 15 percent on Monday. According to the Bloomberg Billionaires Index, Musk's wealth has shrunk by $130 billion since January.
"In addition to disruptions related to changing over its most important model to a new design, blowback against Chief Executive Officer Elon Musk is hurting Tesla’s standing in some of the world’s biggest EV markets early this year," notes Bloomberg.
In Germany, sales have dropped by 70 percent. This is due to Musk's X-pat propaganda, favouring the far-right Alternative for Germany (AfD) before the recent parliamentary elections. Meanwhile, in China, where Tesla is trying to compete with domestic BYD, deliveries of new cars fell by 49 percent in February to approximately 31,000 vehicles. This is the lowest monthly result since July 2022.
This year, Tesla's shares have fallen by 45 percent, losing the gains made since Trump's election in November last year. Musk revealed on Fox Business that he is "having a tough time" running his companies while focusing on the Department of Government Efficiency (DOGE), which aims to implement severe budget cuts. Officially, Musk has no role in DOGE, as the administrative director is an official named Amy Gleason.
