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Tesla (NASDAQ: TSLA) surged nearly 4% Tuesday after U.S. President Donald Trump warned that attacks on Tesla dealerships would be treated as domestic terrorism. Standing alongside Tesla CEO Elon Musk at the White House, Trump condemned "radical Leftist activists" staging Tesla Takedown protests, which oppose Musk's role in government workforce cuts and program cancellations.
"If you harm Tesla or any company, we’ll catch you, and you’ll go through hell," Trump declared, as Musk sported a "Make America Great Again" cap. Recent demonstrations outside Tesla dealerships in Portland and New York have led to arrests, while reports of vandalism remain under investigation. Protest organizers denied violence, asserting their right to peaceful demonstrations.
Trump’s public support extended further when he selected a Tesla Model S for White House staff use. Despite previously revoking Biden’s EV mandate, Trump praised Musk’s leadership, prompting the billionaire to pledge Tesla would double U.S. production within two years.
Tesla’s stock has struggled since peaking at a $1.5 trillion valuation in December, weighed down by declining sales, investor concerns, and Musk’s political affiliations. However, Musk remains committed to Tesla’s future, reiterating his focus on ramping up production.
With Musk’s deepening role in Trump’s administration and ongoing tensions over Tesla protests, the political and economic landscape surrounding the automaker remains volatile.
