Donald Trump Reportedly Selling Tesla Model S As Rift With Elon Musk Deepens

Donald Trump is likely to sell or dispose of the bright red Tesla Model S he very publicly acquired for the White House in March this year. In a display criticised by ethics watchdogs as a huge conflict of interest, Trump and Musk posed together using the White House as a backdrop to endorse Tesla and boost its sales. The car brand has dipped in popularity and sales have taken a dive across the US and abroad in recent months, largely due to Musk’s relationship with Trump. Musk has been widely criticised for his chaotic approach to improving US government efficiency by defunding federal agencies and mass firing staff, after being appointed as a “special government employee”.

At the time he acquired the red Model S, Trump also called for harsh punishments including 20-year jail sentences for anyone caught vandalising a Tesla car or dealership, likening anti-Musk protestors to domestic terrorists. He stated that he had personally purchased the car, which retails for around $80,000 (approximately ₹68,58,960 before taxes) but would leave it at the White House for staffers to use. In a highly publicised demonstration, Trump sat inside the car and praised its design, reportedly saying “Wow, that’s beautiful” and “Everything’s computer!” in reference to its large central infotainment screen. He also branded Tesla critics as “Radical left lunatics”.

However as Musk has now departed his government role and the two have traded harsh insults online, multiple US media sources have reported that Trump is planning to sell the car or give it away. Citing unnamed White House officials, USA Today and the BBC have also claimed that Trump has no further interest in talking to Musk.

The President of the USA is not allowed to drive a vehicle himself, for security reasons.

In the past week, Musk has publicly called Trump’s budget bill a “disgusting abomination” and alluded to his relationship with convicted child sex offender Jeffrey Epstein, while Trump threatened to cancel Musk’s government contracts and said he “just went CRAZY” regarding the cancellation of EV purchasing mandates.

Though the two had publicly posted effusive praise about each other less than a week ago, both spent large parts of Thursday and Friday trading barbs and threats. In a notable escalation, Musk threatened to immediately cancel SpaceX’s Dragon crewed capsule, imperiling the International Space Station and its crew, but then soon backed down. He also called for Trump to be impeached.

Tesla’s market cap has declined by over $380 billion since Trump took office in January, slipping to well below its $1.5 trillion peak in December 2024, in the time between Trump’s election win and inauguration, when Musk was routinely seen by his side. The stock currently trades at $295.14, down from its all-time peak of $436 just six months ago, rising slightly after crashing to $277 on Thursday. The stock price has defied market expectations for some time now, being likened to a meme stock which is traded more on sentiment than the actual value of a company.

The American carmaker has also faced criticism for failing to deliver on its promises of self-driving technology. Brand value and sales figures in the US, Canada, Europe, China, and other markets have dropped sharply as Musk associated himself with Trump and embraced rhetoric seemingly aligning with Neo-Nazi interests. Musk is said to have had influence over multiple US government agencies such as the US Department of Justice, the Securities and Exchanges Commission, and the National Transportation and Highway Safety Administration, all overseeing investigations into his companies. Most recently, Tesla has also tried to block the release of crash safety data in the US, saying this would hurt its financial interests. 

Meanwhile, Tesla’s highly anticipated launch in India has not happened yet, despite all signs pointing to the company hiring staff, aquiring showroom space, and conducting road tests – although manufacturing in India is seemingly off the table for now.