Trump Supports Musk’s Tesla in Post as Company Stock Plunges/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ In a surprising turn, President Donald Trump publicly supported Tesla and Elon Musk despite recent tensions and Tesla’s declining financial performance. His social media post came after Tesla reported a 12% drop in revenue and warned of future struggles. Investors remain cautious, with Tesla’s stock falling roughly 9% following the announcement.
Trump’s Tesla Support + Quick Looks
- Trump posts support for Tesla on Truth Social
- Tesla stock plunges 9% after weak quarterly earnings
- Revenue down 12%, profit drops 16% in Q2 2025
- Trump refutes claims he’ll strip subsidies from Musk’s firms
- Tesla faces loss of EV tax credits under Trump budget
- Musk slams Trump’s budget, hints at new political party
- Robotaxi service expands as Tesla shifts focus to autonomy
- Tariffs on China and Mexico expected to impact Tesla revenue
- Trump’s remarks aim to ease investor fears amid political divide
Trump Supports Musk’s Tesla in Post as Company Stock Plunges
Deep Look
President Donald Trump made a notable shift in tone Thursday, offering a rare public show of support for Elon Musk’s Tesla — just hours after the electric vehicle maker revealed a disappointing financial quarter and signaled tougher times ahead. The endorsement, delivered via Trump’s Truth Social platform, came despite recent friction between the two billionaires and growing concerns among investors over Tesla’s market trajectory.
“I want Elon, and all businesses within our Country, to THRIVE,” Trump wrote, pushing back against speculation that his administration plans to strip federal support from Tesla and Musk’s other ventures.
The message came on the heels of Tesla’s earnings report, which revealed a 12% drop in revenue and a 16% decline in profit for the April-June quarter. Analysts and stakeholders had already anticipated weak performance, but the confirmation sparked a sharp selloff, with Tesla’s shares dropping nearly 9% by midday.
“Everyone is stating that I will destroy Elon’s companies by taking away some, if not all, of the large scale subsidies he receives from the U.S. Government. This is not so!” Trump wrote. “The better they do, the better the USA does, and that’s good for all of us.”
Tesla’s financial struggles are compounded by several upcoming policy changes under the Trump administration. The most immediate threat is the potential loss of the $7,500 electric vehicle (EV) tax credit, a key incentive that has helped fuel Tesla’s domestic sales. Trump’s new tariffs on imports from countries like China and Mexico are also projected to add hundreds of millions in costs to Tesla’s supply chain.
Complicating matters is Musk’s escalating criticism of the president’s economic policies. Musk, who frequently uses his social media platform X to spar with political opponents, recently labeled Trump’s budget a “disgusting abomination” and claimed it worsens the national debt. He even hinted at forming a third political party, signaling deeper ideological rifts.
Despite the political drama, Trump’s latest comments attempt to cool tensions and reassure markets. But they did little to reverse the market’s reaction to Tesla’s earnings report. The company warned investors that the next few quarters could be especially difficult as it shifts focus from vehicle sales to autonomous ride services and robotics.
Tesla’s new strategy hinges on the success of its “robotaxi” initiative. After years of promises, the company launched its first paid robotaxi service in Austin, Texas in June. Musk told analysts this week that Tesla aims to roll out the self-driving taxi platform to nearly half the U.S. population by the end of the year — pending regulatory approval.
“We’re in this weird transition period where we’ll lose a lot of incentives in the U.S.,” Musk said on the earnings call. “Probably could have a few rough quarters,” he added, though he remained optimistic that by late 2026, the financial outlook will improve significantly.
In addition to autonomy, Tesla is banking on future growth from its robotics division. Musk highlighted the company’s progress in building humanoid robots, though he admitted those products are not expected to contribute meaningfully to the company’s revenue anytime soon.
The Tesla CEO continues to face pressure from shareholders, regulators, and politicians across the spectrum. Democratic lawmakers in Texas have already asked Musk to delay the robotaxi rollout due to safety concerns, while international competition from automakers in Europe and China continues to erode Tesla’s market share.
Trump’s supportive statement marks a shift in messaging and may help defuse some investor fears about the administration’s stance on Tesla’s federal benefits. Whether this political olive branch is part of a broader reconciliation or a temporary pause in hostilities remains unclear.
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