Musk and Trump support each other! Tesla, Inc. plans to double its production capacity in the United States to promote "manufacturing industry returning to the United States"

World's richest person and founder of xAI, Elon Musk, CEO of Tesla, Inc. (TSLA.US) announced a significant plan to double the electric vehicle production capacity in the United States in the next two years. Musk's decision not only shows his confidence in the future development of the American electric vehicle industry, but also expresses strong support for the "reshoring of manufacturing to the United States" policy of President Donald Trump. It is also a show of support for Trump's recent budget cuts in the Department of Government Efficiency (DOGE) and publicly announcing the purchase of Tesla, Inc. to support Musk's "mutual support." Musk stated on his personal social platform X: "To express strong support for President Trump's policies and show our confidence in the future of America, Tesla, Inc. promises to double the car production capacity in the United States in the next two years!" This public statement comes in the face of a series of operational and market challenges that Tesla, Inc. is currently facing. These challenges include a significant drop in stock prices, as well as a slowdown in global sales of Tesla, Inc. due to opposition from American and European consumers who feel that Musk has too much influence in Western politics. As of now, Tesla, Inc.'s stock price has dropped by nearly 43% since 2025. Recently, the stock price plunged by 15% in a single day on Monday, marking the worst performance since September 2020. This sharp decline in stock prices can be attributed to several factors, including intensified competition in key markets and Musk's increasing influence in Western politics, leading to serious protests from non-MAGA camps and European consumers. Since taking on the leadership position at the Department of Government Efficiency (DOGE), Musk has faced strong opposition and demands from federal government officials, as well as Democratic and Republican factions within the non-MAGA camp, to have Trump restrain Musk. Additionally, Musk has used his commercial and political influence to intervene in European politics and elections, causing a global wave of demonstrations opposing the purchase of Tesla, Inc. electric vehicles, ultimately leading to a more than 40% drop in Tesla, Inc.'s stock price. Tesla, Inc.'s fundamentals are facing multiple headwinds, most of which are closely tied to the giant CEO Musk. Currently, Europe is experiencing a "anti-Tesla, Inc. storm, in part due to dissatisfaction among Europeans with Musk's frequent interventions in European politics and his expanding influence in political and business circles. Sales in China are also declining, with Tesla, Inc.'s vehicle sales in its largest market dropping by as much as 49% year-on-year. It is worth noting that sales in key markets such as Europe and China have shown significant downturns. In February 2025, Tesla, Inc.'s electric vehicle sales in China plummeted by 49.2% year-on-year, significantly lagging behind almost all local electric car competitors in China. In addition, the Texas-based electric vehicle giant reported a 1.1% drop in global sales for the full year of 2024, marking the first annual sales decline for Tesla, Inc. in over a decade. In 2024, Tesla, Inc. produced a total of 1,773,443 vehicles and delivered 1,789,226 vehicles, both of which fell short of market expectations. Trump openly expresses strong support for Tesla, Inc. and Musk Facing the challenges that Tesla, Inc. is facing, President Trump has publicly voiced strong support. This week, he personally purchased a Tesla, Inc. Model S Deluxe Corporation electric vehicle to show his confidence in the future development of Tesla, Inc. He also praised Musk, who leads the Department of Government Efficiency (DOGE), as an "extraordinary patriot," and strongly criticized recent protests against Tesla, Inc., calling these actions "illegal." Trump stated that any violent acts against Tesla, Inc.s products would be considered "domestic terrorism." In a press conference at the White House, Trump sternly warned, "I want to tell you, if you attack Tesla, Inc. or attack any American company, we will get to the bottom of it, and you will pay a painful hellish price. Trumps strong statement comes in response to recent protests and acts of vandalism against Tesla, Inc.'s electric vehicles in various parts of the United States. These protests, under the name "Tesla Takedown," primarily stem from some groups, especially those supporting the Democratic Party and federal employees, who are strongly dissatisfied with Musk's large-scale layoffs and cuts to humanitarian project funds as head of the Department of Government Efficiency (DOGE). The day before, Trump had publicly stated in a press conference that he would purchase a "brand new Tesla, Inc." to support Elon Musk, whom he referred to as a "truly great American." Trump commended Musk's performance at the DOGE department and criticized protesters for "hurting a great American company." Meanwhile, Musk himself was caught wearing a black "Make America Great Again" hat.Baseball cap.Tesla, Inc. stock briefly rebounded after Trump's statement, "Super Bull" Morgan Stanley supports stock prospects Tesla, Inc. stock rebounded by about 4% on Tuesday following positive news from President Trump publicly supporting Tesla, Inc.'s electric cars and Elon Musk himself. In addition, Trump announced that the White House will also purchase Tesla, Inc. vehicles for use by White House staff, further boosting confidence in Tesla, Inc. stock among fans of the company and Elon Musk. As of pre-market trading on Wednesday, Tesla, Inc. stock rose by 3.35% to $238.300 per share. However, year-to-date, Tesla, Inc. stock has still dropped by approximately 43%. The Trump administration has expressed full support for Tesla, Inc. and its leader Elon Musk, attempting to stabilize investor confidence. Musk emphasized in his latest tweets the significant increase in Tesla, Inc.'s production capacity to support the Trump administration's important policy of "bringing manufacturing back to America": "As a result of the outstanding policies of President Trump and his government, as well as to express our strong confidence in the future development of America, Tesla, Inc. will double its domestic automobile production capacity in the next two years." In recent months, Tesla, Inc. stock has been under pressure amid multiple negative factors, dropping nearly 50% from its high point on December 1, 2024. Despite this, Wall Street giant Morgan Stanley, known as the "super bull" of Tesla, Inc., still sees a bright future for the electric car manufacturer, stating that despite recent fluctuations, it still has long-term growth potential, and the stock's downturn represents a buying opportunity. Morgan Stanley points out that Tesla, Inc. stock is volatile, and potential positive catalysts in the future include the launch of its first autonomous RoboTaxi service in Austin, Texas (expected between June and August), updates to federal regulations on Tesla, Inc.'s fully autonomous driving technology (FSD), and the latest technology demonstration of Tesla, Inc.'s Optimus humanoid Siasun Robot&Automation. In the eyes of many tech giants like NVIDIA Corporation CEO Jensen Huang, as well as Wall Street fund managers like "Wood Sister," Tesla, Inc.'s FSD based on fully unmanned operation will be the world's most advanced high-end intelligent driving system. However, the biggest concern currently lies in the approval process for FSD and Robotaxi based on FSD systems in the U.S. and Chinese markets. If there is no positive progress, this may push Tesla, Inc. stock into bear market territory. Morgan Stanley has set a target price of $430 for Tesla, Inc. stock and considers it the preferred stock in the U.S. automotive and shared travel industries. At the same time, the firm also emphasized the long-term growth potential in the fields of embodied AI and Siasun Robot&Automation.