Trump offers support to Musk's car company in a surprising post as Tesla
stock plunges
[July 25, 2025]
NEW YORK (AP) — President Donald Trump took to social media Thursday
morning to support Elon Musk's car company, a startling development
given their bitter public feud.
”I want Elon, and all businesses within our Country, to THRIVE,” Trump
wrote on Truth Social.
The post wasn't enough to help Tesla's stock, which fell sharply after
the company reported another quarter of lackluster financial results and
Musk warned of some potentially “rough quarters” into next year. The
stock fell 8.2% and is now down more than 24% so far this year.
Late Wednesday, Tesla said revenue fell 12% and profit dropped 16% in
the April-June quarter. Many prospective buyers have been turned off by
Musk’s foray into right-wing politics, and the competition has ramped up
in key markets such as Europe and China.
Investors have been unnerved by Musk's social media spat with the
president because Trump has threatened to retaliate by ending government
contracts and breaks for Musk's various businesses, including Tesla.
But Trump struck a starkly different tone Thursday morning.
“Everyone is stating that I will destroy Elon’s companies by taking away
some, if not all, of the large scale subsidies he receives from the U.S.
Government. This is not so!" Trump wrote. “The better they do, the
better the USA does, and that’s good for all of us.”
After Trump's massive budget bill passed earlier this month, Tesla faces
the loss of the $7,500 EV tax credit and stands to make much less money
from selling regulatory credits to other automakers. Trump’s tariffs on
countries including China and Mexico will also cost Tesla hundreds of
millions of dollars, the company said on its earnings call.
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People visit a booth of Tesla during the 3rd China International
Supply Chain Expo at the China International Exhibition Center, in
Beijing, China, Friday, July 18, 2025. (AP Photo/Mahesh Kumar A.)
 Musk has blasted the budget bill on
his own social media platform X for adding to U.S. debt at a time
when it is already too large. The Tesla CEO has called the budget
pushed by the president a “disgusting abomination” and has
threatened to form a new political party.
On Wednesday's call, Musk said the electric vehicle
maker will face “a few rough quarters” as it moves into a future
focused less on selling cars and more on offering people rides in
self-driving cars. He also talked up the company's business making
humanoid robotics. But he acknowledged those businesses are a ways
off from contributing to Tesla’s bottom line.
Tesla began a rollout in June of its paid robotaxi service in
Austin, Texas, and hopes to introduce the driverless cabs in several
other cities soon. Musk told analysts that the service will be
available to probably “half of the population of the U.S. by the end
of the year — that’s at least our goal, subject to regulatory
approvals.”
“We’re in this weird transition period where we’ll lose a lot of
incentives in the U.S.,” Musk said, adding that Tesla “probably
could have a few rough quarters” ahead. He added, though, “Once you
get to autonomy at scale in the second half of next year, certainly
by the end of next year, I would be surprised if Tesla’s economics
are not very compelling.”
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