In a surprising display of support Thursday morning, President Donald Trump posted on his social media platform, Truth Social, expressing goodwill toward Elon Musk and his electric vehicle company Tesla — a stark shift in tone after months of public feuding between the two high-profile figures.
“I want Elon, and all businesses within our Country, to THRIVE,” Trump wrote.
The statement came just hours after Tesla posted disappointing second-quarter results, triggering a steep selloff on Wall Street. By early afternoon, the company’s stock had fallen nearly 9%, weighed down by a 12% drop in revenue and a 16% decline in profit.
A Friendly Message Amid Tough Policy Moves
Trump’s post struck a conciliatory tone that caught many off guard, especially given his administration’s recent moves that directly affect Tesla’s bottom line. Under Trump’s newly passed budget, Tesla faces the loss of the $7,500 federal EV tax credit, and revenue from regulatory credit sales — once a steady source of profit — is also set to shrink.
Additionally, Trump’s new wave of tariffs on imports from China and Mexico, two countries deeply embedded in Tesla’s supply chain, could cost the company hundreds of millions of dollars annually. The President had previously hinted at ending subsidies for Musk’s companies altogether — including not just Tesla, but also SpaceX and The Boring Company.
But on Thursday, Trump sought to dispel those concerns.
“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!” the President posted. “The better they do, the better the USA does, and that’s good for all of us.”
Musk Warns of “Rough Quarters” Ahead
Despite Trump’s support, Tesla faces mounting challenges. On an earnings call Wednesday, CEO Elon Musk warned that the company will likely endure “a few rough quarters” as it transitions away from a car-sales-driven business model toward a future based on self-driving robotaxis and humanoid robotics.
The company recently launched a paid robotaxi service in Austin, Texas, and Musk said he expects it to expand to cover “probably half of the population of the U.S.” by year’s end — if regulators sign off. But that timeline is far from certain, and Tesla’s advanced tech ventures have yet to contribute significantly to its bottom line.
“We’re in this weird transition period where we’ll lose a lot of incentives in the U.S.,” Musk said. “Once you get to autonomy at scale... I would be surprised if Tesla’s economics are not very compelling.”
Political Tensions Not Entirely Buried
Musk has repeatedly criticized Trump’s economic policies, particularly the latest budget bill, which he called a “disgusting abomination” on his platform, X (formerly Twitter). He has even floated the idea of forming a new political party, further complicating his relationship with the sitting President.
Still, Thursday’s post suggests that Trump may be attempting to stabilize the relationship — at least publicly — amid growing concerns from investors and industry leaders that political infighting could damage innovation and competitiveness in the EV and tech sectors.
The Road Ahead
Tesla’s near-term outlook remains cloudy. As government incentives evaporate and global competition from automakers in Europe and China heats up, Tesla faces pressure to deliver on its lofty promises around AI, automation, and mobility.
President Trump’s message of support may buy Musk some goodwill — but it won’t fix softening demand, policy headwinds, or market skepticism overnight.
