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• President Trump has purchased a Tesla Model S Plaid, despite the vehicle having 37 recall notices against it.
• Trump’s endorsement could significantly boost Tesla’s sales, according to market analysts.
• The purchase comes at a critical time for Tesla, following a recent stock tumble.

Quick Brief

2-Minute Digest

Essential Context

President Trump, the former President of the United States, has made a notable purchase of a Tesla Model S Plaid, valued at $90,000. This move is significant, especially given that the vehicle has 37 recall notices against it. Trump’s decision to buy the car and his subsequent endorsement could have substantial implications for Tesla’s sales and market standing.

Core Players

• Donald Trump – President Trump
• Elon Musk – CEO of Tesla
• Tesla Inc. – Electric vehicle and clean energy company

Key Numbers

• $90,000 – Price of the Tesla Model S Plaid purchased by Trump
• 37 – Number of recall notices against the Tesla Model S Plaid
• 1.7 million – Potential incremental Tesla sales if 5% of Republicans follow Trump’s endorsement
• 3.79% – Increase in Tesla’s stock price following Trump’s announcement

Full Depth

Complete Coverage

The Catalyst

Trump’s purchase of the Tesla Model S Plaid was made during a 30-minute White House event where he selected the Ultra Red model. This event featured five Tesla models, and Trump insisted on paying full price for the vehicle.

“The one I like is that one,” Trump said, highlighting his preference for the specific model.

Inside Forces

The timing of Trump’s purchase is crucial, as Tesla had recently experienced one of its worst single-day sell-offs in history. Trump’s endorsement could provide a much-needed boost to Tesla’s sales and stock performance.

Market analyst Gary Black noted that if just 5% of Republicans who 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 for fiscal year 2025.

Power Dynamics

Trump’s influence on consumer behavior, particularly among his supporters, is significant. His endorsement of Tesla could sway a substantial number of potential buyers. Additionally, Trump praised Elon Musk as a “patriot” who has been “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.”

Outside Impact

The market responded positively to Trump’s endorsement, with Tesla’s stock rising 3.79% on the day of the announcement. This increase is a welcome relief for Tesla, which had seen its stock fall over 53% since December, erasing nearly $800 billion in investor wealth.

Consumer and investor reactions are mixed, with some expressing concerns about the recall notices and others seeing the endorsement as a positive sign for Tesla’s future.

Future Forces

The long-term impact of Trump’s endorsement will depend on several factors, including how effectively Tesla addresses the recall issues and how the market responds to future endorsements or criticisms from influential figures.

Potential areas to watch include:

• Tesla’s ability to resolve the recall issues promptly
• Consumer confidence in electric vehicles and Tesla specifically
• Market reactions to future political endorsements or controversies

Data Points

• March 11, 2025: Trump announces the purchase of the Tesla Model S Plaid
• 3.79%: Increase in Tesla’s stock price following Trump’s announcement
• 1.7 million: Potential incremental Tesla sales if 5% of Republicans follow Trump’s endorsement
• 53%: Decline in Tesla’s stock since December 2024
• $800 billion: Investor wealth erased due to Tesla’s stock decline