US President Donald Trump's car, a Tesla Model S, bought in March, was more symbolic as he cannot drive on public roads. Photo / Getty Images
US President Donald Trump's car, a Tesla Model S, bought in March, was more symbolic as he cannot drive on public roads. Photo / Getty Images
Searching for a hardly sat-in luxury EV in cherry red? The US President might be willing to cut you a deal.
A day after his public spat with Elon Musk, the White House signalled Saturday that President Donald Trump might be joining the ranks of buyers with Tesla remorse andsurrender the keys to his nearly new Model S.
Trump bought the sedan in March, calling it “a great product, as good as it gets” to show his support for the Tesla CEO.
Donald Trump may sell his Tesla Model S after a public feud with Elon Musk. Photo / Kevin Dietsch, Getty Images
The gesture was meant to counter some of the public backlash to Musk’s involvement with the US Doge Service, some of which was funnelled towards Tesla dealerships, charging stations and even some car owners in the form of vandalism and protests.
Trump’s unorthodox car show on the South Lawn of the White House in March marked the apex of his cosy relationship with the billionaire, who spent at least US$288 million ($477m) to help return him to the Oval Office. Because US Presidents and Vice-Presidents are prohibited from driving on public roads, Trump’s purchase of the Tesla was more symbolic than functional.
Donald Trump has exchanged threats, digs and accusations on social media with Elon Musk. Photo / Getty Images
But fissures in their relationship emerged soon after Musk exited Doge, blowing up in spectacular fashion on Friday as the two exchanged a barrage of threats, digs and accusations on social media. Now that the alliance is apparently over, a senior White House official said Saturday that Trump is thinking of selling the luxury EV that Car and Driver says retails from US$80,000 to more than US$100,000.
If he did, he’d be among the wave of Tesla owners unloading their cars. Trade-ins surged in March as Musk and Doge moved to dramatically cut the federal workforce. The buyers who once proudly touted their Teslas had soured on the cars, dampening the company’s performance.
Given the provenance of Trump’s Model S, it may sell for a collector’s bounty. But if it were subject to the traditional used-car market, it might go for far less than its manufacturer’s suggested retail price (MSRP).
The TrueCar online marketplace on Friday listed one 2024 Model S for sale within 800km of Washington, with just 4760 miles (7660km) on the odometer, and an asking price of US$54,980 – 28% below the 2024 MSRP listed in Car and Driver.
Tesla trade-ins surged in March, and the company's deliveries dropped significantly in the first quarter. Photo / Tesla market filing
By comparison, prices for 2024 electric BMW i5 vehicles with 4000 to 5000 miles were about 13% below their MSRP.
Tesla stock has hit some bumps; its shares fell nearly 14.7% this week and are now down more than 26.8% year-to-date, according to MarketWatch.
In the first quarter, the company recorded its largest drop in deliveries in history, coming in 50,000 units below last year. This week, Goldman Sachs lowered its second-quarter vehicle delivery estimates for Tesla, pointing to “demand/brand issues” turning off consumers in US and European markets.
Dan Ives, managing director at Wedbush Securities and a longtime Tesla bull, said the “major beef” between Musk and Trump has been “a shock to the market” that puts “major fear” into the hearts of Tesla investors as they consider how far the feud might go.
“This must start to be calmed down on the Musk and Trump fronts,” Ives said in commentary Friday. “It’s not good for either side.”
