Trump promotes 'purchased' Tesla at White House to boost Musk’s slumping company

US President Donald Trump made a highly publicised purchase of a red Tesla Model X at the White House, alongside Tesla CEO and Department of Government Efficiency (DOGE) Head Elon Musk.

The publicity stunt took place in front of a line-up of Tesla vehicles, including the Cybertruck, on the South Lawn of the White House.

It comes after shares in Tesla fell over 15% amid concerns about meeting production targets and a drop in sales. While Trump blamed a boycott by "radical left lunatics" for harming Elon Musk, analysts have pointed to fears about Tesla’s ability to meet delivery expectations and Trump's tariffs as the main reasons for the slump.

Trump's tariffs have created anxiety among investors, with concerns that they could increase prices and slow economic growth. As the US economy faced uncertainty, particularly after Trump hinted at a potential recession, shares in technology companies like Nvidia, Meta, Amazon, and Alphabet also dropped sharply.

Tesla’s stock showed some recovery on Tuesday, rising 3.6%, but concerns about lower-than-expected deliveries persist, as highlighted by a UBS analyst.

Trump, who had previously announced on social media that he would buy a Tesla in support of Musk, sat in the red Model X and described it as "beautiful." Pointing to the car, he confirmed, "This is my pick." The two also walked over to the Cybertruck, with Musk commenting that the vehicle is bulletproof.

Trump, who was joined by Musk and his son X, praised the tech entrepreneur, calling him a "great guy" and a "patriot." Trump stated that he wanted to buy a Tesla after seeing the lineup of cars Musk had on display, emphasizing that it was a very public purchase.

"This was a very public purchase, and they're beautiful, and they do a great job," Trump told reporters. He also expressed admiration for Musk’s work, mentioning that while Musk's political views are not always clear, he is a dedicated patriot.

The president’s purchase came as Tesla's stock had recently suffered a decline due to Musk's increasing political involvement and criticism of federal government policies. However, Tesla shares rose following the purchase. Trump commented on the backlash Musk has faced, stating that he believed Musk had been treated unfairly by a small group of people. "He can't be penalized for being a patriot," Trump added.

Trump also addressed concerns about recent attacks on Tesla vehicles and showrooms across the country. Police are investigating a series of incidents in which Tesla vehicles were vandalized. In response, Trump stated, "I will label any violence against Tesla dealerships as domestic terrorism," adding that he would take swift action to stop such acts.

Although Trump did not test drive the car, he clarified that he would not personally be driving the Tesla, as he is not permitted to do so. However, he confirmed that White House staff would be allowed to use the vehicle.

Trump also made it clear that he was purchasing the car at full price. "I don’t want a discount," he said, adding that Musk had offered one, but he declined to avoid any suggestion of favoritism.

US President Donald Trump's tariffs on steel and aluminium imports have now taken effect, imposing a 25% duty on these metals and removing country exemptions. The move is expected to escalate tensions with major trading partners like Canada, the European Union, and Australia, some of which have vowed to retaliate.

Trump aims to boost domestic steel and aluminium production, but critics warn the tariffs could raise prices for US consumers and hinder economic growth. The American Iron and Steel Institute has supported the move, citing potential job creation and a boost to local manufacturing.

These tariffs have contributed to a global stock market sell-off, with the S&P 500 dropping 2.7% on Monday and continuing to fall. European markets like the FTSE 100, CAC 40, and DAX also saw declines.

In a separate development, the US and Canada briefly stepped back from a major trade war escalation after Trump halted a plan to double tariffs on Canadian steel. However, Canada still faces the 25% tariff on steel and aluminium imports, as the new duties have taken effect.

The sell-off accelerated this week after Trump refused to rule out the prospect of an economic recession, further heightening market anxieties.