Tesla (TSLA) stock was racing higher again today and owner Elon Musk may have his Oval Office friend to thank.
Noticing that the EV maker’s share price was in somewhat of a tailspin, President Donald Trump rode to the rescue in his customary fashion – a late-night post. Trump, who has made Musk the head of his Department of Government Efficiency or DOGE, declared in his post that he promised to buy a Tesla in a show of support for his friend.
Trump Targets Lunatics
Some may see that as ironic as a number of observers have put the blame for a large part of the Tesla share slump, and the U.S. markets dive in general, squarely at his door given tariffs and talk of recession. Trump said on his Truth Social platform that he would buy a “brand new” Tesla today “as a show of confidence and support for Elon Musk, a truly great American.”
As reported by the Financial Times, Trump added: “Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla.” Whether this is the form of support Musk needs or is what is often termed a “kiss of death,” only time will tell.
Although generally a good thing to have friends in high places, Musk’s eager support of Trump has led to a consumer backlash against Tesla particularly amongst U.S. country singers like Sheryl Crow who publicly waved goodbye to her Tesla on social media and those “lunatics” in Europe.
Tesla Facing Chinese Competition
Musk has intervened in politics over there mainly in Germany where he has backed the far-right Alternative for Germany party and in the U.K. where he has been less than supportive of PM Sir Keir Starmer and Reform Party leader Nigel Farage.
Tesla’s bread and butter – the cars – are also facing some headwinds, particularly in China where it is suffering intense competition from the likes of automaker BYD.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 11 Hold and 12 Sell ratings. Its highest price target is $550. TSLA stock’s consensus price target is $340.31 implying an 47.12% upside.
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