Tue, 11 Mar 2025

Tue, 11 Mar 2025 Trump says he will buy a Tesla after stock slump

The US president blames "radical left lunatics" but analysts point to Tesla sales slump.

* US President Donald Trump announced he will "buy a brand new Tesla" after shares in the electric car firm fell 15% due to concerns over production targets, sales, and tariffs.
* Analysts attribute the share price drop to: + Fear of Tesla meeting production targets + Drop in sales over the past year + Trump's economic policies on tariffs, which are making investors nervous
* Despite his comments, Trump's policies have been designed to limit electric car sales, including revoking a 2021 order for half of all car sales to be electric by 2030 and halting unspent government funds for charging stations.
* Tesla shares recovered somewhat after Trump's comments, but still down 15.4% on Monday
* Analysts say the main reason for the share price drop is not due to "radical left lunatics" boycotting the firm, as claimed by Trump, but rather hard numbers such as falling sales and production concerns.
* Other US tech stocks also fell sharply, including Nvidia, Facebook owner Meta, Amazon, and Google-parent Alphabet.
* Experts say Tesla is over-valued and that the drop is seen as a correction, while others point to rising competition from Chinese electric vehicle companies.
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