President Donald Trump was seated at the Resolute Desk in the Oval Office when Elon Musk entered. Feeling generous, Trump asked if there was something his administration could assist with regarding Tesla, the firm led by Musk.
In the early 2020 gathering, nothing specific popped up for Musk; these specifics were never disclosed earlier.
However, last week, Trump seemed to grant an extraordinary benefit to the wealthy technology innovator, the biggest donor In the 2024 election cycle and with his primary supporter, there occurred an extraordinary joint event—part news briefing, part sales pitch—in which the president participated. showcased Tesla Vehicles were present on the White House driveway as he announced his selection from among them — a vibrant cherry red Model S for personal use.
The incident triggered an upsurge in backing from conservatives for Tesla, a firm grappling with a declining share value, vexation among investors, and consumer boycotts. sometimes violent protests At locations throughout the nation, as Tesla stockholders urge Musk to refocus on the company that crowned him the wealthiest individual globally, this occurrence underscored how Musk’s growing partnership with Trump has simultaneously benefited and complicated aspects of his vast commercial enterprise.
Trump and his associates are making threats against those who vandalize Teslas, saying they will classify Anti-Tesla demonstrators should be considered domestic terrorists. "Should you decide to tamper with a Tesla, visit a dealership or take any such action—be warned, we will come after you," stated Attorney General Pam Bondi. said in a Friday interview On Fox Business, they stated, "If you're supporting this, we'll be targeting you. We will track down your identity."
In the meantime, Republican officials and MAGA advocates are encouraging their followers to buy Musk’s electric vehicles. They showcased a Tesla during a gesture made on Friday via X post Senator Ted Cruz from Texas remarked, "This could very well be the most amazing thing I have ever witnessed."
The campaign has led to an increase in "Buy a Tesla" search queries across numerous historically conservative regions, as indicated by Google Trends data. Additionally, Tesla's stock price has shown modest recovery. However, this strategy might push away the progressive clientele that were instrumental during its initial growth phase. Furthermore, amid Tesla's struggles, several high-ranking officials within the company have reportedly explored external opportunities recently, under conditions of confidentiality due to concerns about potential repercussions.
Musk’s gamble that participating in and driving the MAGA movement will be financially advantageous could prove extremely perilous," stated Paul Barrett, who serves as the deputy director of the Stern Center for Business and Human Rights at New York University. "His enterprises might become so discredited in the view of numerous common people that their reputation could incur irreversible harm.
"The risk for Musk is that he comes to representcrony capitalism," Barrett stated.
Musk, the White House, and Tesla have not commented on these requests.
Musk’s partnership with the president has strengthened. since he poured nearly $290 million toward electing Trump and other Republican candidates in 2024, leading to several collaborative events with Musk taking charge of the U.S. DOGE Service. Nonetheless, their cost-reduction measures—and Musk’s involvement—have sparked significant controversy. Approximately half of all Americans disapprove of Musk’s work within the federal government, according to a Washington Post-Ipsos poll.
Up until lately, Musk’s association with Trump had been beneficial for his corporate ventures. However, Tesla’s share price has dropped by almost 35 percent this year, wiping out the increases it experienced following Trump’s electoral victory, at which time investors viewed Musk’s closeness to the president as a significant advantage for his company.
In reaction to the latest incidents of vandalism and protests, followers of Donald Trump are rallying together to aid in reversing these negative trends.
Lily Tang Williams, who is campaigning for Congress in New Hampshire, shared a video on X showing her inside a Tesla’s driver’s seat on Monday. Addressing over 247,000 followers on her @Lily4Liberty account, she stated, “Radical left-wing Marxists and communists aim to silence you if you refuse to submit to their demands, should you be seen as a threat.”
A different activist, ex-Republican congressional contender for Ohio JR Majewski, shared an image of a brand-new Tesla along with the comment, "Model S Plaid. Grateful thanks to Tesla and Elon Musk."
Sean Hannity, a Fox News anchor, declared during his television program that he planned to purchase a Model S. He described this decision as "a sign" of support for Musk.
“It’s just a way of saying, you know, look what they’re doing to this guy,” he said. “Look what’s going to happen to the workers at Tesla, the salespeople, the people on the line that are going to lose their job.”
Several business leaders on the right, such as Vivek Ramaswamy—a pharmaceutical executive and contender for governor of Ohio—have suggested that numerous businesses might thrive by exclusively targeting conservative consumers. Although Fox News has taken advantage of this idea, some investors like Peter Thiel and Omeed Malik, who is a partner at an investment company associated with Donald Trump Jr., believe there’s potential for developing a comprehensive "anti-woke" or parallel market yet to be fully explored.
However, according to certain experts, this backing from conservatives might not be sufficient to halt the downturn at Tesla, which has surpassed the overall market by around 30 percent.
If Tesla's deliveries have indeed decreased compared to last year, I believe this decline is linked to harm done to the brand," stated Gene Munster, managing partner at Deepwater Asset Management. "People already had firm views about Elon Musk, and these opinions seem to have intensified in the last couple of months.
Wedbush analyst Dan Ives reinforced this idea earlier this week in a letter to investors entitled "A 'Moment of Truth' for Musk and Tesla With DOGE," pointing out that although Trump's victory was anticipated to pave the way for self-driving cars, it has simultaneously "entangled Tesla within this developing political controversy."
The Tesla gathering at the White House last Tuesday marked the peak of a significant shift in the country’s highest-level political dynamics over the past twelve months. Five years back, towards the end of his initial term, Trump showed great enthusiasm about persuading Musk to pledge that his subsequent Tesla plant would be constructed within the U.S., thereby achieving a victory for local production.
Skeptical about electric cars, Trump expressed his doubts to Musk during their White House discussion, mentioning that although he had Teslas, finding places to recharge them was an issue. In response, Musk gestured for a Tesla executive present at the meeting to demonstrate to Trump the extensive coverage of Tesla’s Supercharger stations, highlighted as numerous red spots on his smartphone map.
According to two individuals with knowledge of the discussion, who spoke anonymously due to the private nature of the topic, the meeting was friendly and centered around Trump’s objectives for his policy plan. They verified certain elements of their talk. However, privately, one of these sources mentioned that Trump ridiculed how extensively Musk relied on his assets—mostly company shares serving as loan collaterals—to build his fortune. Additionally, Trump criticized how Musk’s businesses benefited significantly from governmental support such as subsidies and federal contracts.
"I could have told him to drop to his knees and beg,' and he would have complied," Trump stated about Musk during that meeting, as posted on Truth Social.
Even though he was skeptical about electric vehicles and had an at times challenging rapport with Musk, during his 2024 campaign, Trump ended up depending on the billionaire’s substantial fortune to help advance both himself and Republican contenders into office.
For Musk’s detractors, the press conference seemed like an all-time favor from Trump, signaling potential conflicts of interest across his various businesses. It appears that officials within the Trump administration are already offering assistance to Musk’s internet service—Starlink—which is under the umbrella of his company, SpaceX. took on roles At the Federal Aviation Administration, the organization looked into replacing an existing communication agreement with Starlink satellite internet terminals, as The Post had earlier reported.
Four Senate Democrats have asked The U.S. Office of Government Ethics was advised to suggest an investigation into Musk and Trump for their promotion of Tesla. This recommendation came from Gerry Connolly (D-Virginia), who leads the House Oversight Committee. sent a letter To Trump’s lawyer David Warrington on Wednesday, they reached out regarding possible ethics breaches.
Connolly requested that the White House pinpoint which government workers were involved in arranging the event. Additionally, he aims to discover what correspondence occurred between White House officials and Tesla prior to the gathering and whether anyone at the White House holds a financial stake in the automobile firm along with their potential involvement in planning the occasion. The administration must respond by March 26th.
Many Americans are finding it difficult to pay for food, child care, and homes," Connolly stated. "In response to the growing economic challenges, President Trump suggested an automobile advertisement aimed at increasing Tesla's stock prices. This strategy was particularly notable as Tesla is led by Elon Musk, one of Trump's most significant financial supporters during his campaign and a current federal worker.
A member of Musk’s inner circle, speaking anonymously to discuss a confidential matter, expressed skepticism that the scrutiny faced by Tesla would divert Musk’s focus from DOGE, which has been tasked with completing its objectives by July 4, 2026.
The individual stated, "Elon believes this is the most crucial endeavor globally, and once he locks onto an objective with intense concentration, that's precisely what gets accomplished." They added, "He won’t be deterred from his path unless he chooses to do so himself."
Post a Comment