Tesla (TSLA, Financials) tumbled 9% Thursday after weak quarterly results and cautious comments from CEO Elon Musk but President Donald Trump took to social media to offer unexpected public support for the company.
I want Elon, and all businesses within our Country, to THRIVE, Trump posted on Truth Social. The statement marked a notable shift in tone following a recent feud in which Trump threatened to pull government support from Musk-led ventures.
The post came hours after Tesla reported a 12% drop in revenue and a 16% fall in profit for the second quarter. On the earnings call, Musk warned that the company could face a few rough quarters as it pivots from vehicle sales to robotaxis and autonomous ride services.
Tesla is also bracing for the loss of federal EV tax credits and rising costs from tariffs imposed under Trump’s latest budget bill. Musk, who has criticized the legislation as a disgusting abomination, said regulatory changes will hit Tesla’s finances this year.
Still, he said autonomy at scale could reshape Tesla’s economics by late 2026. Tesla recently launched its first paid robotaxi service in Austin and hopes to expand to half the U.S. population by year-end, pending regulatory approval.
This article first appeared on GuruFocus.
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