Make Tesla Great Again! Trump Backs Musk, But Can Tesla Stock Keep Up?

Trump is at it again, doing what he does best—showing support. This time, he’s not donating money but buying a Tesla to show his support for Musk and his company. It’s quite a turn of events, considering Musk donated a fair amount to Trump back when he was in office. Now, Trump is returning the favor, and it’s all very “Trump-esque.”

But Trump isn’t just any customer; his words can influence more than just sales—they can affect stock prices too. Musk, ever the savvy businessman, seized the opportunity. After Trump announced his Tesla purchase, Musk quickly said, "As a function of the great policies of President Trump and his administration, and as an act of faith in America, Tesla is going to double vehicle output in the United States.”

You can click here to check the video.

$TSLA’s stock surged by over 9%, and at the time of writing, it's still up more than 8%. Prior to this, Tesla’s stock had dropped nearly 43% in 2025, with a single-day drop of 15% on March 10, its worst performance since 2020.

So, can Trump’s support really make Tesla "great again"?

Trump: The First President to Sell Cars?

It’s rare to see a president recommend a product, but Trump doesn’t follow the usual rules. He went on camera praising Tesla, making sure the world knew he’d bought one and loved it.

His deputy chief of staff, Scavino, even live-streamed the whole process on X, turning this “presidential shopping spree” into national news. It’s like Trump was saying to the entire nation: “Buy a Tesla—it’s patriotic and affordable!”

Other presidents would likely be roasted by Washington elites for such a stunt, but for Trump, this is just his style. His logic is simple: if it's a free market, let the market solve the problems. Americans aren’t buying electric cars? That’s because Biden’s policies are pushing them. But when Trump buys one, it’s not coercion—it’s a trend!

For Musk, this is a godsend. Tesla’s stock had been falling, and the market was doubting its growth story. Trump’s endorsement is like a shot of adrenaline. If the President is backing it, doesn’t Wall Street need to reassess Tesla’s value?

Musk: Doubling Production—Can It Work?

After Trump bought the car, Musk quickly announced, “We’re ready to double production!” This sounds promising, but the question is, does the market even need that much more supply?

Tesla’s global sales were steady last year, but growth is slowing, especially in China and Europe, where competition is tough. Musk’s announcement feels more like a promise to the capital market than a reflection of actual demand.

The real issue: doubling production requires doubling demand, and Tesla’s sales haven’t been stellar lately. They’ve even been slashing prices to boost sales. Expanding production blindly could lead to unsold cars.

But Musk isn’t just talking nonsense. His plan might be: with Trump backing him, the policy environment will shift, market expectations will rise, and stock prices will follow. This isn’t about market demand—it’s about the political game.

In short, whether Tesla can truly "be great again" may not depend on consumers but on Washington's politics.

Tesla Stock: Ready for Takeoff or Another Drop?

In the short term, Trump’s support has sparked a rebound in Tesla’s stock. But getting back to 2021 highs? Not so fast.

- On one hand, market confidence can be restored, but Tesla’s growth model still needs to prove itself. The next few quarters’ earnings reports are crucial.

- On the other hand, whether Trump’s policies are a “long-term boost” or just “short-term hype” depends on whether the GOP can actually deliver real industry support. If it’s just talk, the stock’s recovery might be short-lived.

Overall, Trump’s win is more positive than negative for Tesla. Markets dislike government interference, but Trump’s stance of “less regulation, less subsidy, less interference” means Tesla can continue expanding freely, without worrying about sudden policy changes.

So, Tesla’s stock future might look like this:

1. Short-term:Policy expectations rise, stock recovers (market bets on better policies and funds flowing in).
2. Mid-term:Performance matters (if sales and profits improve, stock will continue to rise).
3. Long-term: Global competition shapes valuation (if China and Europe rise, Tesla’s valuation may face pressure).

In conclusion, a short-term rebound seems likely, but the real “bull market” still needs time to prove itself. Whether Musk and Trump can truly make Tesla “great again” will depend on market reactions. One thing’s for sure: the capital market loves drama, and these two will never disappoint.