Just under three months ago, former President Donald Trump stood alongside Elon Musk outside the White House, proudly selecting a new Tesla vehicle. However, following a tumultuous public feud with the Tesla CEO, it appears Trump may soon part ways with his shiny electric vehicle. A senior White House official has confirmed to Business Insider that Trump is contemplating selling or donating his red Model S, which has an estimated list price of around $80,000. This revelation was initially reported by The Wall Street Journal.
Trump chose the Model S from a selection of Tesla cars during a promotional event with Musk at the White House in March. At that time, this decision was seen as a display of support for Musk, who is considered one of Trump's most significant financial backers. During this period, Tesla's stock had experienced a notable decline, and the company faced protests due to Musk's controversial efforts to reduce the workforce at the Department of Energy (DOE).
During the event, Trump expressed his admiration for Tesla, stating that he was purchasing the Model S because it is "a great product, as good as it gets." He further praised Musk for his dedication, asserting that Musk had devoted his life to his work and was being treated unfairly by a small, vocal group of critics.
Since that supportive moment, the relationship between Trump and Musk has dramatically soured. A public spat ignited last Thursday when Musk criticized Trump's ambitious tax proposal through a series of posts on the social media platform X. In response, Trump labeled Musk as "crazy" and suggested that a straightforward way to save billions in government expenditures would be to eliminate Musk's governmental subsidies and contracts.
This ongoing feud has had significant repercussions for Tesla's stock market performance. Following the exchange, Tesla's stock price plummeted by 14% on Thursday, resulting in a staggering $138 billion loss in the company's market valuation. Fortunately for shareholders, Tesla shares experienced a slight recovery on Friday, rebounding nearly 5% in morning trading, although they remain down by one-fifth for the year.
If Trump ultimately decides to sell his Model S, he may want to act quickly. A recent study conducted by the used car site iSeeCars in April revealed that used Model S prices have seen the most significant drop of any vehicle model over the past year. This decline in resale value reflects a broader trend affecting the resale market for used Teslas.
As of now, Musk has not provided any immediate comments regarding the unfolding situation. The future of the Trump-Musk relationship remains uncertain, and the fate of Trump's Model S hangs in the balance as both figures navigate their public personas amid this controversy.
