Musk says Tesla will double vehicle production in 2 years to ‘support Trump’s policies’

Tesla CEO Elon Musk on Tuesday announced that his company would double the production of electric vehicles in the US within two years.

“In support of the policies of President Donald Trump and to demonstrate our confidence in the future of the United States, Tesla commits to doubling vehicle production in the US within 2 years!” Musk wrote on X.

The announcement of his ambitious plan comes after Trump bought a brand-new Tesla EV in a show of support for his close advisor Musk, who helped the president pick the shiny red car.

“I said, ‘you know, Elon, I don’t like what’s happening to you, and Tesla’s a great company,’” Trump told reporters while standing alongside Musk, his top donor, in front of a red Tesla on the White House south portico.

“He has never asked me for a thing, and he’s built this great company, and he shouldn’t be penalized because he’s a patriot,” Trump continued.

The unprecedented product endorsement by a sitting president came after Tesla shares cratered amid market fears spurred by Trump’s tariffs and backlash to Musk’s controversial role in slashing the US government.

Get in, patriots—we have a country to save.🇺🇸@ElonMusk helps President Trump pick his new @Tesla! pic.twitter.com/VxdKMsOBjW

— The White House (@WhiteHouse) March 11, 2025

Why did Tesla stocks drop?

Tesla’s stock dropped by nearly half in three months. The company’s market capitalization has dropped 45 per cent since hitting an all-time high of $1.5 trillion on December 17, erasing most of the gains the stock made after CEO Musk helped finance the election victory of Trump.

The stock has been slipping since December due to declining vehicle sales and profits, backlash against Musk’s political involvement—including his role in mass layoffs of US government employees as a senior advisor to Trump—and investor concerns that his political activities are diverting attention from his most profitable business.

With inputs from agencies