Tesla (TSLA, Financials) shares were up 2% in pre-market trading at $226.68 as of 7:00 a.m. GMT-4 on Tuesday, recovering some losses after former U.S. President Donald Trump expressed support for CEO Elon Musk. The stock had dropped 15.4% on Monday, closing at $222.15, marking its steepest one-day decline since September 2020.

Posting on Truth Social, Trump promised to purchase a new Tesla and called Musk "a truly great American." The remarks followed Tesla's abrupt selloff, which experts linked to worries over less than projected first-quarter car deliveries.

Originally projecting 415,000 automobiles, UBS reduced its Q1 delivery projection to 367,000. In the third quarter, Tesla shipped 462,890; in the fourth quarter, 495,570.

Declaring that Tesla's long-term future remained bright, Musk sought to reassure investors on X, previously Twitter. Protests at Tesla sites, motivated by opposition to Musk's political affiliations and government employment cutbacks under the Department of Government Efficiency, have generated questions about possible brand harm and demand effect, nevertheless.

Later this year, Tesla is supposed to provide updates on its artificial intelligence and autonomous driving projects. Potential development catalyst: the business is getting ready to establish an autonomous ride-hailing service in Austin, Texas. Furthermore, influencing investor mood might be advancements on Tesla's Optimus humanoid robot.