Trump's Turbulent Relationship with Musk: Selling the Tesla Model S?

Recent Developments in Trump's Tesla Ownership

Just under three months ago, President Donald Trump was seen alongside Tesla CEO Elon Musk at the White House, where he chose a new Tesla Model S in a display of support for Musk and his company. However, this relationship has taken a notable downturn, leading to speculation that Trump may consider selling or giving away the high-profile electric vehicle.

A senior White House official has confirmed that Trump is contemplating parting ways with the red Model S, valued at approximately $80,000. This potentially marks a shift for Trump, who only recently showcased his admiration for the Tesla brand amid growing concerns about Tesla's stock performance and the company’s ongoing external challenges.

The Context of Trump's Purchase

During the initial purchase event back in March, Trump emphasized his belief in the Tesla brand, stating it was a "great product, as good as it gets." He lauded Musk for his commitment to the electric vehicle industry, asserting that the CEO had been treated unfairly. At that time, Tesla faced mounting pressures, as its stock dipped and protests erupted due to Musk's push to downsize federal workforce involvement.

A Deteriorating Relationship

Fast forward to recent developments, and the bond between Trump and Musk has soured significantly. A public feud erupted after Musk criticized Trump's tax policy, which led Trump to label Musk as "crazy." The fallout has led Trump to suggest eliminating governmental subsidies and contracts that benefit Musk, which he claims would save billions in federal spending.

This escalating conflict has had tangible effects on Tesla’s market valuation; on a recent Thursday, shares plummeted by 14%, erasing a staggering $138 billion off the company's worth. Although shares rebounded slightly the following day, they remain significantly lower compared to earlier this year.

The Impact on Tesla's Resale Market

If Trump decides to sell his Model S, timing may be crucial due to a study indicating that resale values of used Tesla Model S vehicles have depreciated more than any other model over the last year. As such, the window for a lucrative sale may be closing rapidly.

Meanwhile, Elon Musk did not provide immediate comments regarding the situation or any potential reactions to Trump's intentions. The fate of the relationship between these two influential figures remains uncertain, leaving the public and market observers keenly watching for further developments.