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Trump Backs Tesla as Stock Hits New Low

President Trump assures that Tesla's government subsidies will remain despite falling stock prices.

July 24, 2025 at 06:52 PM

President Trump Says He Doesn’t Plan to ‘Destroy’ Tesla (TSLA) as Stock Sinks

President Trump reassures that he will not cut Tesla's subsidies amid falling stock prices.

Trump Affirms Support for Tesla as Stock Faces Decline

U.S. President Donald Trump has reassured Tesla that he does not intend to remove its government subsidies. His remarks come as Tesla's stock (TSLA) has dropped 9% following disappointing earnings and a bleak forecast from CEO Elon Musk. On social media, Trump emphasized his desire for American businesses to prosper, highlighting that he wants to see Elon Musk's ventures succeed. The downturn in TSLA may be influenced by concerns over an impending end to the $7,500 electric vehicle tax credit set for September, as well as declining automotive sales and increased competition in crucial markets. Tesla's revenue from regulatory credits has also seen a significant decrease, raising questions about its future profitability amid rising competition.

Key Takeaways

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Trump supports Tesla by stating he will not cut their subsidies.

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TSLA stock fell 9% after disappointing second-quarter results.

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Musk indicates potential challenges ahead for Tesla.

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Tesla's reliance on regulatory credits raises concerns.

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Increasing competition from low-cost electric vehicles is a threat.

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Analysts rate TSLA as a Hold, reflecting market uncertainty.

"I want Elon, and all businesses within our Country, to THRIVE."

Trump aims to assure that he will protect Tesla's subsidies.

"The better they do, the better the USA does, and that's good for all of us."

Trump reinforces the link between Tesla's success and national prosperity.

"Tesla's automotive sales fell 16% year-over-year to $16.7 billion."

The decline highlights Tesla's challenges in maintaining market leadership.

"TSLA stock is down 25% this year."

This statistic illustrates investor concerns amidst financial uncertainty.

Trump's comments may aim to stabilize Tesla's stock price during a turbulent time for the company. Although he projects support, the reality is stark; Tesla recently reported a 14% drop in vehicle deliveries. Increased competition, especially from cost-effective Chinese electric vehicles, poses a serious challenge. Analysts hold a consensus Hold rating on TSLA, reflecting a cautious approach as optimism around electric vehicle subsidies clashes with the realities of a changing automotive landscape. The looming end of the tax credit could further jeopardize Tesla's market position, making Trump's commitment to keep subsidies intact all the more critical for investor confidence.