Trump’s Critique of Musk and EV Mandate Repeal: Potential Market Implications

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“I am saddened to watch Elon Musk go completely “off the rails,” essentially becoming a TRAIN WRECK over the past five weeks. He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States – The System seems not designed for them. The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds! Republicans, on the other hand, are a smooth running “machine,” that just passed the biggest Bill of its kind in the History of our Country. It is a Great Bill but, unfortunately for Elon, it eliminates the ridiculous Electric Vehicle (EV) Mandate, which would have forced everyone to buy an Electric Car in a short period of time. I have been strongly opposed to that from the very beginning. People are now allowed to buy whatever they want – Gasoline Powered, Hybrids (which are doing very well), or New Technologies as they come about – No more EV Mandate. I have campaigned on this for two years and, quite honestly, when Elon gave me his total and unquestioned Endorsement, I asked him whether or not he knew that I was going to terminate the EV Mandate – It was in every speech I made, and in every conversation I had. He said he had no problems with that – I was very surprised! Additionally, Elon asked that one of his close friends run NASA and, while I thought his friend was very good, I was surprised to learn that he was a blue blooded Democrat, who had never contributed to a Republican before. Elon probably was, also. I also thought it inappropriate that a very close friend of Elon, who was in the Space Business, run NASA, when NASA is such a big part of Elon’s corporate life. My Number One charge is to protect the American Public!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Donald Trump’s criticism of Elon Musk and the removal of the EV mandate could lead to volatility in Tesla’s stock due to potential shifts in investor sentiment regarding electric vehicles. Ford and General Motors may see a positive impact as the removal of the EV mandate could allow them to focus on a broader range of vehicle technologies, potentially boosting their market appeal. The Vanguard Consumer Discretionary ETF and Consumer Discretionary Select Sector SPDR Fund might experience fluctuations depending on how these developments affect the broader consumer discretionary sector, particularly in automotive stocks.

Here are some of the stocks that might be affected:
Ford Motor Company ((F)),
General Motors Company ((GM)),
Tesla Motors ((TSLA)),
Vanguard Consumer Discretionary ETF ((VCR)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)).