Trump's Tesla Model S Plaid Purchase Could Boost Sales Significantly

President Donald Trump has recently acquired a Tesla Inc. Model S Plaid for use by White House staff, and this move might have a big impact on the sales of the electric vehicle company.

What Happened: Gary Black, Managing Partner of The Future Fund LLC, shared his thoughts on X, stating that "President Trump's endorsement of Tesla today is potentially HUGE." He believes that if just 5% of Republicans considering a Tesla actually make a purchase due to Trump's endorsement, it could lead to an additional 1.7 million sales. This number is quite close to Tesla’s global delivery forecast of 1.8 million vehicles for the fiscal year 2025.

Black noted that Trump gained significant support in the last election, with approximately 77.3 million (49.9%) of American adults who voted choosing him. By applying this percentage to the total adult population of 260 million in the U.S., it suggests that around 129.7 million people may respect Trump’s opinions and be influenced by his endorsement of Tesla.

During a recent White House event that showcased five Tesla models, Trump chose an Ultra Red Model S Plaid. He expressed his preference by stating, "The one I like is that one," and insisted on paying the full price for the car. At that event, Elon Musk, CEO of Tesla, was present and tried to highlight the unique features of the Cybertruck, emphasizing its bulletproof capabilities.

Why It Matters: Trump's public support for Musk could be crucial at this time for Tesla. Recently, Tesla’s stock had taken a hit, dropping 15% after analysts downgraded their delivery projections for the company. However, the stock started to recover the following day after Trump's announcement regarding his vehicle purchase.

Overall, Tesla's stock has decreased more than 53% since December 2023, wiping out nearly $800 billion in market value for investors. There have been concerns among investors that Musk’s commitments to various ventures, including his role in the Trump administration’s Department of Government Efficiency, might divert his attention from Tesla and other companies like SpaceX, X, and xAI.

Price Action: On Tuesday, Tesla shares ended at $230.58, representing a 3.79% increase. After hours trading saw the price rise to $234.99, marking an additional gain of 1.91%. So far this year, Tesla’s stock is down 39.21%, according to data from market analysts.

In conclusion, Trump's endorsement of Tesla through his purchase of the Model S Plaid may serve as an influential catalyst for boosting sales among his supporters and potentially stabilizing the company's stock performance.

Trump, Tesla, Sales