Former U.S. President Donald Trump speaks alongside Elon Musk during a press conference held in the Oval Office at the White House in Washington. (AP Photo/Evan Vucci, File)
In a surprising twist, former U.S. President Donald Trump publicly backed Elon Musk’s Tesla on Thursday, despite their long-standing, high-profile disputes. Trump’s show of support arrived just as Tesla’s stock took a nosedive, dropping over 8% following disappointing financial results and warnings of difficult months ahead.
Writing on his social media platform, Truth Social, Trump posted, “I want Elon, and all businesses within our Country, to THRIVE.” The post came just hours after Tesla revealed that its revenue slid 12% and profits dipped 16% in the April to June quarter. The slump triggered investor concern and sent Tesla’s stock tumbling — now down more than 24% this year alone.
The results highlighted a growing set of challenges for the electric carmaker. Tesla is facing increased competition from other EV makers in Europe and China, and Musk’s vocal right-wing political stance has turned off many potential customers. These issues, combined with weaker demand and shrinking tax benefits, have clouded Tesla’s near-term outlook.
A Change in Tone
Trump’s message caught many off guard, especially considering the tensions between the two in recent years. There has been speculation that Trump, if reelected, might strip Musk’s companies of government incentives and contracts. But his recent post suggested otherwise. “Everyone is stating that I will destroy Elon’s companies... This is not so!” Trump wrote. “The better they do, the better the USA does, and that’s good for all of us.”
Despite Trump’s words of encouragement, Tesla still faces serious financial headwinds. With the recent approval of a massive U.S. budget bill — which Musk fiercely criticized — Tesla risks losing the $7,500 EV tax credit that boosts consumer demand. The bill also limits the company’s ability to sell regulatory credits to other automakers, cutting off another key revenue stream.
On top of that, Trump’s proposed tariffs on imports from China and Mexico could cost Tesla hundreds of millions of dollars, something the company pointed out during its recent earnings call.
Musk Hits Back at U.S. Spending
Elon Musk hasn’t been shy about expressing his displeasure with U.S. spending policies. He slammed the new budget bill on X (formerly Twitter), calling it a “disgusting abomination” and accusing lawmakers of worsening national debt. Musk even hinted at creating a new political party in response.
During Wednesday’s earnings call, Musk tried to shift attention from Tesla’s current struggles to its future plans. He said Tesla is now focusing less on selling electric cars and more on building a future with self-driving ride services. The company is testing its paid robotaxi service in Austin, Texas, and hopes to expand to several U.S. cities later this year.
Musk claimed that the service could reach half of America’s population by the end of the year, “subject to regulatory approvals.” He also spoke about Tesla’s ambitions in building humanoid robots — although he admitted those ventures are still far from making money.
A Rocky Road Ahead
Still, Musk remained cautiously optimistic. “We’re in this weird transition period where we’ll lose a lot of incentives in the U.S.,” he said. “We probably could have a few rough quarters.” Yet, he insisted that by the end of next year, if Tesla reaches large-scale autonomy, “I would be surprised if Tesla’s economics are not very compelling.”
Though Tesla's short-term forecast remains cloudy, Musk is betting big on the future — even as Trump’s unexpected endorsement gives the company a rare moment of political goodwill.
