Donald Trump’s decision to publicly purchase a Tesla appears to have had a major financial impact, with the company’s market value surging by $56.3 billion in a single day. The boost came after Trump announced on Truth Social that he would buy a Tesla as a “show of confidence and support” for Elon Musk, who has faced backlash over cost-cutting measures in both the private and public sectors.
Tesla’s stock had been struggling, with its value cut in half earlier this year due to declining sales, layoffs, and activist-led boycotts. However, after Trump posed with a Republican red Tesla Model S, the company’s share price spiked 7.6% in 24 hours, reaching a market capitalization of $780 billion. Trump blamed the “Radical Left” for trying to harm Musk financially, calling him a “truly great American” who should not be punished for helping “Make America Great Again.”
Despite the positive financial impact, Trump’s endorsement has raised ethical concerns. Critics argue that a sitting U.S. president should not publicly promote a private company, especially one run by a close political ally. Some have compared it to previous controversies over government officials appearing to favor certain corporations for financial gain.
Although Trump is legally prohibited from driving his Tesla due to Secret Service restrictions, he has gifted it to White House staff for official use. Meanwhile, Musk has yet to comment on the stock surge, but investors are closely watching whether this momentum will continue or if the boost was just a temporary reaction to Trump’s high-profile purchase.
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