Trump's Tesla Endorsement Draws Ethical Scrutiny and Investor Concerns

President Trump’s public support for Tesla and Elon Musk raises questions about ethics, stock volatility, and the political impact on the EV brand.

Donald Trump publicly endorsed Tesla and announced plans to purchase a vehicle, calling the company 'one of the world’s great automakers.'
Critics and ethics experts argue that Trump’s endorsement may breach federal regulations prohibiting public officials from using their office to promote private businesses.
Tesla’s stock saw a brief recovery after the endorsement but remains down 34% this year, with broader market concerns and brand backlash playing a role.
Elon Musk’s association with Trump and his leadership of the controversial Department of Government Efficiency (DOGE) have alienated Tesla’s traditional customer base, leading to protests and declining sales in key markets like California and Europe.
Competitors, including Chinese automakers and European brands like Polestar, are capitalizing on Tesla’s challenges, offering incentives to attract disaffected customers.