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Trump, Musk, & Tesla: Ethics Scandal & Stock Plunge. KEYWORDS: Donald Trump, Elon Musk, Tesla, Ethics, DOGE, Stock

Donald Trump, Tesla, Elon Musk, ethics, government, DOGE, Richard Painter, electric vehicles, stock, vandalism, protests, political symbol, White House, Commerce Secretary Howard Lutnick, Justice Department, Attorney General Pam Bondi, Tim Walz, Citizens for Responsibility and Ethics in Washington, Joe Biden, Wedbush Securities, Daniel Ives, brand crisis

Trump’s Tesla Tango: Ethics, Backlash, and a South Lawn Showroom

The intersection of politics, business, and personal loyalty has rarely been as stark as in the recent saga surrounding Donald Trump, Elon Musk, and the electric car giant Tesla. What began with a presidential admiration for a shiny red Tesla Model S has spiraled into a controversy involving government ethics, public backlash, and the potential manipulation of market forces.

The article details a scenario where President Trump, seemingly captivated by the aesthetic appeal of a Tesla, orchestrated a display of five Tesla vehicles on the White House South Lawn. This was not a routine presidential purchase, but a calculated move aimed at mitigating the growing animosity towards Tesla and its owner, Elon Musk, who simultaneously leads Trump’s initiative to drastically reduce the size and scope of the federal government.

Musk’s dual role is at the center of the ethical storm. As the head of the Department of Government Efficiency (DOGE), Musk has overseen the dismantling of entire federal departments and the termination of thousands of government employees. This has ignited public anger, manifesting in acts of vandalism and violence against Tesla dealerships across the nation.

The article vividly paints a picture of the backlash, with descriptions of arson, smashed windshields, and the defacing of Tesla vehicles. Even some Tesla owners, once proud early adopters, have expressed regret with bumper stickers proclaiming, "I Bought This Before We Knew Elon Was Crazy!" The situation is further compounded by Tesla’s recent recall of 46,000 Cybertrucks, adding another layer of challenge for Musk’s EV company.

Trump’s administration has responded to this crisis with a level of support for Tesla that has raised eyebrows and sparked accusations of ethical impropriety. Richard Painter, former White House ethics chief under President George W. Bush, condemned the administration’s actions, stating, "I’ve never seen the United States government promote a particular company."

The article highlights the potential conflict of interest inherent in Musk’s simultaneous roles. His companies have benefited from billions of dollars in government contracts, loans, and tax credits. Furthermore, Musk, through DOGE, has influenced or even dismantled government agencies that previously regulated or investigated his businesses. The ethical quandary deepens with reports that Musk was scheduled to receive a briefing from the Pentagon on military strategies concerning China, a nation where he also has significant business interests. Although Trump denied the report, the mere suggestion raised serious questions.

At the Tesla showcase on the South Lawn, Trump publicly defended Musk, framing him as a patriot unfairly targeted. When asked about the potential impact of his Tesla purchase on the company’s stock, Trump candidly expressed his hope that it would boost the company’s financial standing. Commerce Secretary Howard Lutnick went even further, publicly urging Americans to invest in Tesla stock, a blatant endorsement that sent Tesla shares briefly soaring.

The Justice Department has also joined the defense of Tesla, prosecuting individuals accused of vandalizing Tesla dealerships. Attorney General Pam Bondi issued a stern warning, characterizing the attacks as "domestic terrorism" and promising to incarcerate those involved.

The White House defends its actions by contrasting them with what they describe as the Democratic Party’s open hostility towards Tesla. They cite comments from Minnesota Governor Tim Walz, the Democratic nominee for Vice President, who allegedly joked about benefiting from Tesla’s declining stock price. White House spokesman Kush Desai accused Democrats of calling for the "ruin of an iconic American company."

However, government watchdogs remain unconvinced, arguing that the administration’s actions constitute a clear violation of government ethics rules. Painter emphasized the prohibition against using public office for private gain, which applies to all members of the executive branch, including the Commerce Secretary.

Citizens for Responsibility and Ethics in Washington (CREW) echoed these concerns, stating that the White House is "playing favorites" and attempting to influence the market in favor of a company owned by a close associate of the President.

Trump’s supporters point to a similar event held by former President Joe Biden in 2021, where he showcased electric vehicles and signed an executive order promoting their adoption. However, the article distinguishes between Biden’s event, which promoted the electric vehicle industry as a whole, and Trump’s overt endorsement of a specific company.

Painter emphasizes the lack of historical precedent for such explicit government promotion of a private company. He points out that while the government has occasionally bailed out struggling automakers, it has never actively promoted one brand over its competitors.

Despite the administration’s efforts, the article suggests that Trump’s actions may be counterproductive. Financial analyst Daniel Ives of Wedbush Securities argues that associating Tesla with partisan politics has damaged the brand’s image and alienated investors.

The article concludes by highlighting the financial challenges Tesla faces. The company’s stock has lost a significant portion of its value this year, and Ives believes that only Elon Musk himself can address the brand crisis. He urges Musk to distance himself from DOGE and focus on leading Tesla.

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