The president of the United States, Donald Trump, has once again made a new announcement. The president took to X to share details, adding how he’s planning to buy a new Tesla to support Elon Musk and the spree of “great accomplishments” that Musk has been doing so far by heading the department of government efficiency. Tesla, on the other hand, is currently projecting a shallow stock stance with TSLA losing nearly 50% of its market cap. Will Trump’s new solidarity support help turn the tables around for Tesla?
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Tesla Collapse: What’s Happening?
Tesla stocks have plunged to a new low on Tuesday, erasing nearly 50% of its market cap in the process. Musk, who has been playing a pivotal role in running the ambitious Department of Government Efficiency, or DOGE, has noted Tesla losing its grip since the day he joined Trump in his endeavor to bolster the US economy. Musk’s fierce tax cut efforts and federal budgeting techniques have been adversely affecting the stocks of Tesla, pushing them to encounter new lows. Per CNBC, the electric automaker has lost nearly 50% of its market cap, deleting nearly $80 billion in the process.
“It will be fine long-term,” Musk tweeted when asked about his recent Tesla stock plunge.
At the same time, Musk took to X to issue new updates, adding how he wishes to continue working for D.O.G.E. in the future.
The Tesla chief is also facing heavy boycott demands due to his recent political decisions, prompting people to protest against his regime and ruling capability. Certain Tesla facilities have also been vandalized in an attempt to show dissatisfaction with Musk’s recent actions and planning regimen.
Trump And Tesla: The Connection?
In an attempt to show camaraderie and support, Donald Trump took to X to outline the Tesla issue, outlining corporate woes that Musk is currently experiencing. In his latest tweet, Trump shared how he will be buying a Tesla as a “show of confidence and support to Musk.
“To Republicans, conservatives, and all great Americans. Elon Musk is ‘putting all on the line” in order to help the nation. And he is doing a fantastic job. But the radical left lunatics, as they often do, are trying to illegally and collusively boycott Tesla. One of the world’s greatest automakers, and Elon’s baby. In order to attack and do harm to Elon and everything he stands for. They tried to do it with me at the 2024 presidential ballot box, but did that work out? In any event, I’m going to buy a brand new Tesla car tomorrow. As a show of confidence and support for Elon Musk, a truly great American. Why should he be punished for putting his tremendous skills to work. In order to help me make America great again?”
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Update on TSLA’s Future?
With Trump showing active support for Tesla, the company’s stock is predicted to show modest traction, later adapting to robust stock pace as Musk earlier mentioned.
Per TipRanks, Tesla (TSLA) is eying the $550 stock mark in the long term, which it may achieve in the next 12 months.
“The average price target for Tesla is $340.31. This is based on 36 Wall Street analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $550.00; the lowest forecast is $120.00. The average price target represents a 53.19% increase from the current price of $222.15.”
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