President Donald Trump‘s recent purchase of a Tesla Inc. TSLA Model S Plaid for White House staff use could significantly boost the electric vehicle maker’s sales, according to Gary Black.
What Happened: Black, Managing Partner of The Future Fund LLC, wrote on X that “President Trump’s endorsement of Tesla today is potentially HUGE.”
Black calculated that if just 5% of Republicans who would consider buying a Tesla follow through after Trump’s endorsement, it could result in 1.7 million incremental purchases, nearly matching Tesla’s global delivery forecast of 1.8 million vehicles for fiscal year 2025.
Trump selected an Ultra Red Model S Plaid during a 30-minute White House event that featured five Tesla models. “The one I like is that one,” Trump said, insisting on paying full price for the vehicle. During the presentation, Tesla CEO Elon Musk stood beside the president and attempted to promote the Cybertruck’s bulletproof features.
See Also: Trump Scraps 50% Tariff Hike On Canadian Steel, Aluminum After Lutnick Talks With Ontario Premier
Why It Matters: The president praised Musk as a “patriot” who was being “unfairly maligned” for his efforts to reduce government spending. “Our country is going to be very strong, very smooth, because of a lot of the things that he’s done,” Trump said, crediting Musk for identifying “billions and billions of dollars of fraud and waste.”
The endorsement comes at a critical time for Tesla, whose shares had tumbled 15% on Monday after analysts cut delivery projections. The stock rebounded on Tuesday following Trump’s announcement of his intention to purchase the vehicle. Overall, Tesla’s stock has fallen over 53% since December, erasing nearly $800 billion in investor wealth.
Investors have expressed concern that Musk’s involvement with the Trump administration through the Department of Government Efficiency has distracted him from his companies, including Tesla, SpaceX, X, and xAi.
Price Action: Tesla closed at $230.58 on Tuesday, up 3.79%. After hours, it rose to $234.99, gaining 1.91%. Year to date, the stock is down 39.21%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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