New Delhi: Former President Donald Trump made a stunning announcement on Truth Social, coming at an especially difficult time considering Tesla’s recent troubles, that he is going to purchase a Tesla. He stated that he wishes to express support for Tesla’s CEO, Elon Musk.
This is at a difficult time for Tesla, initially its stock has fallen 15%, and large protests are occurring against the company.
By issuing this statement, Trump is urging his followers to support Musk, claiming he even referred to the protests against Tesla as “illegal”, although, in fact, political boycotts are shielded by the First Amendment in America, and it’s like saying something is against the rules when it really is permitted.
Trump, in his post, lauded Musk as an important person in helping make America great again. He also said the protests were a punch against American entrepreneurs.
Will this help Tesla?
Trump’s blessing could give Tesla sales a slight boost, particularly as the company has already been discounting its vehicles to entice buyers. But experts warn that is not sufficient to solve Tesla’s underlying issues.
Sales are declining, particularly in Europe, with indications that Tesla may sell roughly 25,000 fewer vehicles this year than in the previous year. And not just politics, Tesla is also finding it tough to produce in China, its largest market. The corporation is producing around 7,000 fewer vehicles than expected this quarter.
Is Trump’s support actually going to matter?
Trump’s support may appeal to some of his supporters to purchase Teslas, but it will not conjure up solutions to the company’s larger problems. Even Musk acknowledges there are significant challenges to overcome. A political shot in the arm will boost morale for awhile, but Tesla requires actual solutions to get back on track, somewhat similar to requiring a physician rather than just taking a painkiller.
