Trump's u-turn on EVs: Promises to buy Tesla amid falling stocks, protests

Challenges grow for Elon Musk's Tesla, as stocks plummet, sales drop, and 'Tesla Takeover' protests erupt across US, with some owner defacing their own cars

In a late-night social media post on Monday, US President Donald Trump announced that he will purchase a new Tesla in a show of support for Elon Musk. The move marks a surprising shift for Trump, who has previously been a strong critic of electric vehicles and clean energy policies.

 

Writing on Truth Social, Trump praised Musk’s efforts of  “putting it on the line” and “doing a FANTASTIC JOB!”, while condemning anti-Tesla protests in the US.

 

“They tried to do it to me at the 2024 Presidential Ballot Box, but how did that work out?” Trump said, referring to his re-election. “Why should [Musk] be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???”

 

 

‘Tesla Takedown’ protests erupt in US

Tesla facilities across the US have become the site of growing protests and acts of vandalism, fueled by backlash against Elon Musk’s political involvement, particularly after President Trump appointed him to lead the Department of Government Efficiency (Doge), a cost-cutting task force.

 

While most ‘Tesla Takedown’ demonstrations have remained peaceful, some have escalated into destruction, with fires deliberately set at showrooms and charging stations in Colorado and Massachusetts last week. This was followed by a large protest in New York, resulting in six arrests as demonstrators occupied a Tesla showroom. Another protest saw shots fired at a dealership in Oregon.  ALSO READ: Elon Musk loses $132 bn in net worth: Why are billionaires losing money?

 

There has also been a surge in vandalism targeting the Cybertruck, with some owners defacing their own vehicles in protest. Responding to these protests, Trump condemned what he called a ‘Radical Left’ attempt to boycott Tesla, while Musk was working to “help our Nation”.

 

“But the Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla, one of the World’s great automakers, and Elon’s baby, in order to attack and do harm to Elon, and everything he stands for,” Trump wrote.

 

Tesla’s sales drop, stock tanks

Trump’s support comes as Tesla grapples with a series of financial and reputational crises. The company’s stock price has plunged more than 50 per cent since December, with a 15 per cent drop on Monday alone – the worst trading day for Tesla since September 2020. The sharp decline has erased more than $800 billion in market value.

 

Beyond Wall Street, Tesla has been facing backlash in the US and abroad. Sales in China, Tesla’s second-largest market, have fallen for five consecutive months, with February shipments plunging 49 per cent year-over-year. In Germany, vehicle registrations dropped 70 per cent in the first two months of 2025, due to Musk's growing unpopularity in European nations as he became more involved in US politics.  ALSO READ: Elon Musk's Tesla is flailing in China and BYD's rapid rise is to blame

 

BYD vs Tesla

Tesla’s struggles in China have been exacerbated by competition from BYD, the Chinese automaker that has rapidly expanded its market share. In February, BYD sold over 318,000 electric and hybrid vehicles – a staggering 161 per cent increase year-over-year – while Tesla’s shipments dropped to their lowest level since mid-2022.  ALSO READ: Musk wins the Twitter war, but Tesla and X are fighting for survival

 

All of Musk’s businesses under fire

In addition to Tesla’s troubles, Musk is also facing difficulties across his other ventures. His social media platform X (formerly Twitter) experienced multiple outages on Monday, while SpaceX is investigating two consecutive explosions of its Starship rocket during test flights.