The support of US President Donald Trump for Elon Musk's electric vehicle company could have an adverse effect despite the initial positive reaction from Tesla investors. During a press conference at the White House, Trump praised Musk and announced that he had acquired one of the company's vehicles, which resulted in a rise in Tesla's stock after a previous decline.
"Tesla is becoming a political symbol of Trump and DOGE, and that is bad for the brand," stated Dan Ives, a financial analyst at Wedbush Securities. Trump's potential politicization of Tesla could be counterproductive to the company's public image and its market performance.
Tesla's shares experienced an increase after Trump expressed his support for Musk, claiming that the latter was risking a lot to benefit the country. In the statement, Trump accused the "radical left" of trying to illegally harm Tesla, which generated controversy and mixed reactions.
Musk's political implication with Trump could put Tesla shareholders in a difficult position, as they might be affected by the CEO's distraction, who also leads other companies. This public backing from Trump for Tesla has sparked debate and concerns about the company's image and its long-term viability.
Despite Trump's seemingly good intentions in supporting Tesla, the relationship between Musk and the president has generated controversy, especially considering the current political situation. Shareholders and market observers will be watching closely to see how this partnership evolves and its impact on Tesla's future.
