☕ Trump wants to buy a Tesla

Good morning!

Ever pondered what is actually written on papers our political leaders hold during press conferences? Well, one sharp-eyed photographer captured this shot of President Trump’s paperwork during his press conference with Elon Musk and a fleet of Tesla vehicles.

I’ve got 30 seconds

Some headlines from this morning:

• A US-led deal to pause fighting between Ukraine and Russia for 30 days has been accepted by Ukraine, and is awaiting Russian approval. Under the deal, the US has agreed to restore military aid to Ukraine and revive intelligence-sharing arrangements, which had been cut off due to tensions between the country’s leaders. In a joint statement on Wednesday, officials said both sides “took important steps toward restoring durable peace for Ukraine.” Hours before the peace deal was announced, Ukraine carried out its largest drone strike on Russia’s capital, Moscow.

• President Donald Trump raised tariffs on Canadian metal products to 50% yesterday. He had initially doubled a 25% tariff applied to all US trade partners, but later reversed this and subjected Canada to the same tariff as everyone else. The initial increase in tariffs against Canada was a response to the announcement from the Premier of Ontario who, earlier this week, announced 25% tariffs on all energy his state exports to the US and threatened cutting electricity exports should the US retaliate. President Trump reversed his decision when the Premier suspended the electricity tariff and said he will meet with the US Commerce Secretary tomorrow to begin negotiations.

• US stocks have dropped sharply again yesterday, continuing a three-week fall from historic highs achieved last month. The S&P 500, a key indicator used to measure Wall Street's economic growth, has dropped a total of 9.3% in the past 21 days. Yesterday’s drop came after the now-reversed increase of Canadian steel tariffs, with many commentators observing the volatility of US trade policy and requests for patience from the White House having a major impact on investor confidence.

• Former Filipino president Rodrigo Duterte has been arrested and transported to The Hague after being arrested by the International Criminal Court on crimes against humanity charges. The ICC issued a warrant alleging he committed crimes against humanity between 2012 and 2019, both as President and as mayor of a major Filipino city. Duterte, who stepped down in 2022, was the architect of a ‘war on drugs’ which allegedly endorsed extra-judicial killings of those suspected of drug dealing - 30,000 people were killed without trial as a result. Duterte’s family have said he is being persecuted, whilst the country’s authorities say they are meeting their international obligations.

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Greenland’s polls have closed in a closely watched national election, where Greenland’s independence from the US was a major campaign topic.

Greenland is a territory of Denmark however, it is mainly “self-governing,” creating its own laws for major domestic issues.

During his first term, President Trump’s offers to buy the island were rebuffed. His interest has intensified during his second term, refusing to rule out using military or economic coercion to take control of Greenland from Denmark, who has retained ownership of the island for 300 years.

Trump’s focus has made achieving independence from Denmark a major election issue in Greenland, with the major candidates unanimously emphasising voters’ desire for complete agency over their future. 80% of residents support becoming completely independent of Denmark, but debates during the campaign have centered around how and when to achieve this new national status.

According to a poll reported by the BBC, 85% of Greenland residents oppose becoming part of the US.

Why does Greenland matter to the Trump Administration?

Greenland is an island of 56,000 people, located between Europe and North America. It has untapped mineral and oil deposits, and occupies a strategically valuable location as a fast shipping route between the two continents. Russian and Chinese ships regularly use sea routes which pass the nation.

Do we know who will win?

Due to the small size of Greenland’s population, and limited pre and post-election polling, it is difficult to predict an election result. Certified results will not be known for some time, as votes make their way from remote parts of the territory.

However, no major candidate has suggested becoming part of the US and whilst independence would give residents more control over their future, it is unlikely to be achieved before President Trump’s second term expires in 2028.

I’ve got 2 minutes

President Trump appeared alongside Elon Musk on Tuesday vowing to buy a “brand new Tesla” in a show of support after stocks in the electric vehicle company dropped by 15%, contributing to a 45% drop in the value of the stock this year.

In a press conference yesterday, President Trump blamed ‘illegal’ boycotts of the product organised by "radical left lunatics" for the change in share price, referencing a series of organised protests outside Tesla dealerships since Musk's ventured into politics.

Dealership protests

Protests have been staged outside Tesla factories across the country, including a 350- person demonstration in Oregon. Most have been peaceful, however some have been more disruptive, including fires set in showrooms, a spike in vandalism against some models of Tesla vehicles, particularly the ‘Cybertruck’, and nine people arrested outside a dealership in New York.

Why are there protests?

Last year, Musk pledged over $250m to Trump’s presidential election campaign. After President Trump won the election, stocks in Musk’s companies - namely Tesla - immediately increased, with investors hopeful the owner's proximity to the president would result in further success.

Musk is now the head of the non-government department called the Department of Government Efficiency (DOGE), which has been tasked with rapidly reducing government expenditure. It has set out to achieve this by reducing the size of the federal workforce through firings or encouraging resignations.

Musk has used X, the social media network he owns, to make a series of announcements in this capacity. There have been concerns over Musk’s legal mandate to make decisions across the federal workforce, as well as DOGE accessing potentially sensitive information.

Are the boycotts the reason the stock has dropped?

The day after President Trump’s inauguration, Tesla’s stock price was $432. Today, it is around $222.

The boycotts and Musk’s political stance have undoubtedly had an impact on Tesla’s brand - in both its standing, and its valuation. Amongst concerns for Musk’s role in the Trump Administration, some investors are also concerned Musk is not giving enough attention to Tesla as he works on his government projects.

However, the company has also reported disappointing sales results in various global markets, which has contributed to reset expectations around its economic prospects. In Europe, China and Australia, the company has seen a sharp decline in sales compared to last year, with January 2025 sales in Europe down 45% compared to January 2024.

It comes amid a wider context of serious declines across the US stock market, which saw many large technology companies drop sharply in value as investors lose confidence in the US’s economic growth.

How is Musk reacting?

Tesla stocks saw a small rebound at the closing of the markets yesterday. Musk has sought to reassure shareholders, promising a continued recovery and greater optimism in Tesla’s global footprint.