From White House photo ops to plunging stock prices, explore how Trump's unexpected support for Tesla may be backfiring, turning the electric car giant into a political battleground.

Is Trump's "Patriot" Endorsement Driving Tesla Off a Cliff?

Donald Trump's vocal support for Tesla, highlighted by a White House showcase of five gleaming Teslas and personal praise for Elon Musk, initially sent the company's stock soaring. But could this embrace be a Trojan horse? Experts are warning that Trump's backing might be doing more harm than good, transforming Tesla into a political lightning rod.

"Tesla is becoming a political symbol of Trump and DOGE, and that is a bad thing for the brand," cautions Wedbush Securities analyst Dan Ives. "You think it's helping, but it's actually hurting."

From Truth Social to Tumbling Shares: The Rollercoaster Ride

The saga began with Trump's overnight post on Truth Social, defending Musk against "Radical Left Lunatics" allegedly boycotting Tesla. A few hours later, the stock surged even higher as Trump announced his own Tesla purchase at the White House, declaring, "I don't like what's happening to you" while admiring a red Model S.

But the initial euphoria was short-lived. Tesla's stock, already battered by competition and concerns over Musk's political alignment, has plummeted a staggering 45% in 2025. On Monday, it hit its lowest point since late October, reflecting growing pessimism about slumping sales.

The $270 Million Gamble: Did Musk Bet on the Wrong Horse?

Musk's hefty $270 million investment in Trump's 2024 campaign, coupled with public appearances, initially seemed to pay off. Tesla shares climbed to $479 per share by mid-December. However, the current trading price of around $230 tells a different story.

This dramatic drop has two critical implications:

1. Worthless Incentives: Tesla's employee stock options, once a coveted perk, are now underwater, leaving workers disillusioned.
2. Fundraising Roadblock: The falling stock price limits Tesla's ability to raise capital through secondary offerings, potentially hindering future research and expansion.

DOGE Days: Is Musk's Focus Spread Too Thin?

Musk's leadership of the Trump administration's "Department of Government Efficiency" (DOGE), aimed at slashing federal spending, has further fueled concerns about his divided attention. This mirrors Tesla shareholders' long-standing worries about Musk's ability to juggle multiple ventures.

His other ventures haven't been immune to turmoil either:

• X (formerly Twitter): Plagued by crashes following massive layoffs, raising concerns about vulnerability.
• SpaceX: Recent rocket explosions add to the perception of a CEO stretched too thin.

Can Tesla Navigate the Political Minefield?

Tesla's brand is now inextricably linked to Trump and his policies, making it a target for protests and vandalism. Some Tesla owners are even resorting to bumper stickers proclaiming "I bought it before Elon went nuts" in an attempt to distance themselves.

The question remains: Can Tesla overcome the political headwinds and regain its footing in the increasingly competitive EV market? Or will Trump's embrace ultimately prove to be the company's undoing?