Trump Warns "Hell to Pay" if Tesla is Harrassed; Tesla Stock Rises 7.6%

# Tesla Shares Surge Following White House Event (Washington, EPA = Yonhap News - Redistribution and DB Prohibited) Tesla saw a sharp stock price increase of over 7% following a White House event aimed at supporting the electric vehicle manufacturer. # Wall Street Revises Q1 Sales Forecasts Downwards (Los Angeles=Yonhap News) — Lim Mina, Correspondent — Tesla's stock surged more than 7% after U.S. President Donald Trump vowed not to tolerate boycotts and attacks targeting the company led by Elon Musk. On January 12 (local time), Tesla shares closed at $248.09 on the New York Stock Exchange, up 7.59% from the previous day. During the trading day, the stock even climbed to $251.84, marking a 9.22% increase at one point. This rally follows President Trump's announcement on Truth Social that he intends to purchase a Tesla vehicle, which had already driven the stock up 3.79% the day before, continuing its upward momentum. Tesla's significant stock jump occurred against a backdrop of Nasdaq's 1.2% rise, fueled by diminishing inflation concerns following a slowdown in the U.S. Consumer Price Index (CPI) growth. The White House's 'Save Tesla' event the previous day significantly amplified this effect. # White House Event Drives Stock Surge President Trump held an event at the White House, displaying five Tesla vehicles and announcing his purchase of one. He praised the Model S sedan, describing it as beautiful and remarkable. Moreover, when asked by a reporter whether those attacking Tesla should be classified as 'domestic terrorists,' President Trump responded affirmatively, promising to stop them as they are harming a great American company. He also issued a stern warning to those targeting Tesla, stating, "They are hurting a great American company. Let me make this clear: if you try to harm Tesla, you will face severe consequences." Financial media outlet Barron's reported, "Following a sort of Tesla advertisement by President Trump and Elon Musk at the White House, Tesla's stock soared." # Market Reactions and Future Outlook Previously, Musk led federal agency downsizing and significant layoffs under the Trump administration, which triggered a boycott and repeated instances of vehicle arson targeting Tesla. This led to a 15.4% plunge in Tesla's stock on January 10, closing at $222.15. The stock had plummeted 53.7% from its peak of $479.86 on December 17 last year, marking a 45% decline year-to-date. The stock has since rebounded to pre-election levels. While the two-day rally might buoy investor sentiment, Tesla’s Q1 vehicle sales report set to be released on February 2 could significantly impact its stock, according to Barron's. Guggenheim revised its Q1 delivery forecast for Tesla from 405,000 units to 358,000 units and set a target price of $170. UBS had previously lowered its Q1 sales estimate by 16% to 367,000 units. Wall Street's average prediction for Q1 is approximately 420,000 units, an 8.5% increase from the same period last year, which saw 387,000 units delivered. Barron's warned that "a decline in sales volume could greatly disappoint investors hoping for Tesla’s growth." Conversely, CFRA analyst Garrett Nelson noted, "Historically, the volatility of Tesla shares has been the norm rather than the exception. Crucially, significant sell-offs have provided profitable buying opportunities for investors." mina@yna.co.kr