US President Donald Trump has unexpectedly offered support to Elon Musk’s car company, Tesla, in a surprise social media post. This comes as the company’s stock price has fallen sharply due to its latest financial results.
Tesla reported a 12% decrease in revenue and a 16% drop in profit during the April-June quarter. The company also warned of potentially “rough quarters” ahead, citing increased competition in key markets such as Europe and China.
In a recent social media post, Trump wrote that he wants Elon Musk’s companies to thrive, saying that the better Tesla does, the better the US economy does. This statement contrasts with his previous threats to end government contracts and subsidies for Tesla, which could have significantly impacted its revenue.
Tesla is set to lose the $7,500 EV tax credit and face increased costs due to Trump’s tariffs on China and Mexico, estimated at hundreds of millions of dollars. Musk has criticized the budget bill, calling it a “disgusting abomination,” and threatened to form a new political party.
Despite this, Tesla aims to expand its robotaxi service in several cities, with Musk estimating that it could reach half of the US population by the end of the year. However, he acknowledged that the company will face “rough quarters” ahead as it shifts focus from car sales to self-driving services and humanoid robotics.
Source: https://apnews.com/article/tesla-musk-stock-robotaxis-austin-cheaper-car-6739cb3c1777db5adf51ab8a39bfa226