President Donald Trump has called for protesters against Tesla to be classified as “domestic terrorists.” His remarks came during a media event at the White House aimed at supporting Elon Musk’s electric car company.

Trump, sitting in a new red Tesla, which he said he planned to buy, spoke alongside Musk. However, he did not drive the car during the event. In recent weeks, demonstrators have targeted Tesla showrooms, protesting Musk’s involvement in the Trump administration’s cost-cutting efforts.

The president criticized these protests, saying they were damaging a “great American company.” He added that anyone who resorted to violence against Tesla would face severe consequences.

Describing the Tesla Model S as “beautiful,” Trump explained that he could not drive it himself due to security reasons for current and former presidents. He joked that the car would be used by White House staff instead. Trump also mentioned he would not buy a self-driving model, which Musk has promised will be available next year.

The event took place as Tesla’s stock value had halved from its peak in December, with a significant 15% drop in one day before a slight recovery. Trump expressed sympathy for Musk, telling him, “Tesla is a great company.”

Musk, a key supporter and donor to Trump’s election campaign, has been charged with reducing government spending through his Department of Government Efficiency (Doge). His cuts to the federal workforce and cancellations of international aid have sparked protests from some Tesla owners.

The so-called “Tesla takedown” protests have seen people gather outside dealerships in cities like Portland, Oregon, and New York City. While organizers claimed the protests were peaceful, some protests turned violent, with fires set at Tesla showrooms and charging stations in Colorado and Massachusetts.

When asked if the protesters should be labeled “domestic terrorists,” Trump responded, “I will do that,” a stance later confirmed by a White House spokesperson. “Anyone targeting Tesla or any company with violence will face severe consequences,” he added.

On his social media platform, Truth Social, Trump blamed “radical left lunatics” for Tesla’s declining share price, accusing them of trying to “illegally boycott” the company. However, stock analysts suggest that Tesla’s share price drop is more likely linked to concerns about the company’s ability to meet production targets and a decline in sales.

UBS analysts warned that new Tesla deliveries might fall short of expectations this year. Lindsay James, an investment strategist at Quilter Investors, noted that while Musk’s politics might have some impact on the brand, the primary reason for the stock drop was Tesla’s sales figures.

“New orders in Europe and China have decreased by about half in the past year,” James explained. Sales in Europe were down 45% in January compared to the previous year, and Tesla has also seen a decline in China and Australia.

Some experts argue that Tesla’s stock was overvalued, and the recent drop is simply a correction. Others point to rising competition from Chinese electric vehicle companies. Concerns over a potential economic slowdown have also impacted investor confidence in high-value companies like Tesla.

There are also worries that Musk isn’t fully focused on Tesla. He mentioned in an interview that managing his duties at Doge, Tesla, SpaceX, and X (formerly Twitter) was proving to be difficult. SpaceX has faced challenges with its Starship rocket launches, and X has experienced technical issues.

Despite his public support, Trump’s policies have worked against the growth of electric vehicle sales in the U.S. He revoked a 2021 order from President Joe Biden, which aimed for electric vehicles to make up half of all car sales by 2030. Trump also halted government funds for new charging stations.

Trump’s tariffs could negatively affect Tesla’s profitability. The company’s CFO, Vaibhav Taneja, stated that parts sourced from Canada and Mexico would be subject to tariffs, potentially increasing costs.

Tesla’s stock drop came amid a broader downturn in the U.S. market, as investors became worried about the impact of Trump’s tariffs and the overall economy. Analysts believe Trump’s economic policies, particularly his stance on tariffs, are contributing to market unease.