President Trump defends Tesla and Musk, calls boycott "illegal" amid share price decline
Kumar Shivam | Mar 12, 2025, 00:17 IST
( Image credit : ANI )
President Donald Trump has announced plans to purchase a Tesla in support of Elon Musk, calling the ongoing boycott against the electric vehicle company "illegal." His remarks come after Tesla's stock saw a significant drop due to economic concerns and protests against Musk’s influence. Trump criticized the "Radical Left" for attempting to harm Musk and his business, despite the legal right to protest.
Trump’s Support for Musk
President Trump took to social media to show his solidarity with Elon Musk, declaring that he would buy a "brand new Tesla" as a gesture of confidence and support for Musk's work. He expressed admiration for Musk’s contributions to the country, claiming that the business magnate was "putting it on the line" for America. Trump condemned those boycotting Tesla, calling them "Radical Left Lunatics" and accusing them of attempting to harm both Musk and his company.
Tesla’s Stock Struggles
Tesla’s shares experienced a steep drop, with the company facing its worst share price decline in almost five years. The fall in stock price was attributed to a variety of factors, including fears of a looming recession and Trump’s proposed tariff plans. These economic uncertainties compounded the negative impact on Tesla, causing its market value to decrease sharply. The decline is part of a broader trend that has seen Tesla's stock lose momentum under the Trump administration.
The Boycott Movement
A boycott against Tesla has gained traction, with activists encouraging the public to sell their vehicles and shares in protest of Musk’s political influence and business practices. However, Trump’s claim that the boycott is "illegal" is incorrect. Legal experts point out that the First Amendment of the U.S. Constitution protects the right to protest against private companies. Despite this, Trump’s rhetoric reflects his belief that the protests are part of a coordinated attack on Musk and his work.
Challenges Facing Tesla
The boycott is also seen in the context of Musk's political involvement through his "Department of Government Efficiency" (Doge), which has faced criticism for its controversial actions in federal government dealings. This has fueled concerns about transparency and the effectiveness of Musk’s push for federal spending cuts. Despite the public backlash, Musk's net worth continues to suffer, having fallen by $132 billion over the past year, largely due to the underperformance of Tesla’s stock. Additionally, international sales of Tesla vehicles, particularly in Germany, have seen significant declines.