You've probably seen the video. It looks real, sounds like him, and the headline is enough to make any TSLA shareholder reach for the antacid. The claim is wild: Trump bans Tesla production in USA because of a "betrayal" by Elon Musk. It’s the kind of news that lights up X (formerly Twitter) and sends shockwaves through the automotive world.
But here is the reality.
It never happened.
The viral clip circulating on TikTok and Instagram is a total deepfake, a piece of AI-generated fiction that expertly mimics the President's voice and mannerisms to create a political firestorm. While the drama between Donald Trump and Elon Musk has been very real—complete with public insults and policy U-turns—there is no executive order, no law, and no federal mandate shutting down Tesla’s Gigafactories in Texas or California. In fact, the actual policy landscape for 2026 is far more nuanced than a simple "ban."
The Origin of the Fake Ban Rumors
The internet is a weird place. Back in June 2025, an account known for AI parodies posted a video that appeared to show Trump in the Oval Office. In the clip, he supposedly says he is "banning the production of all Teslas" effective immediately because Elon "stabbed him in the back."
The timing was perfect for a hoax.
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Trump and Musk had just come off a very public spat. Musk had criticized certain spending bills, and Trump responded by calling him "crazy." When the video dropped, people didn't stop to check the facts. They shared. By the time fact-checkers at organizations like Full Fact and the Deepfakes Analysis Unit got their hands on it, the damage was done. They found the video was actually a horizontally flipped version of a real meeting from May 2025, with synthetic audio layered over it.
If you look closely at the original hoax footage, the US flag pin is on the wrong lapel. The teeth look blurry. The breathing sounds are non-existent. It’s a classic case of "don't believe everything you see on a six-inch screen."
Policy vs. Personal Feuds
While a "ban" is fiction, Trump’s 2025-2026 administration has definitely changed the rules of the game for Tesla. Since returning to office, the President has made it clear that the "Green New Scam"—his term for aggressive EV mandates—is over.
On day one, he signed the "Unleashing American Energy" executive order. This didn't stop Tesla from making cars, but it did pull the rug out from under the federal subsidies that helped sell them.
The $7,500 federal EV tax credit? Gone.
The Biden-era goal of 50% EV sales by 2030? Scrapped.
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Trump’s argument is basically that the market should decide what you drive, not the government in D.C. He famously told a crowd in June 2025 that while he likes Musk, he doesn't like being "forced" to support only electric cars. He wants "drill, baby, drill" and internal combustion engines to stay front and center.
Interestingly, Elon Musk himself has sometimes lobbied against these subsidies. Why? Because Tesla is already profitable and has the scale to survive without them, while his competitors—the "legacy" automakers like Ford and GM—rely on those credits to make their expensive EV transitions work. By removing the help, Trump might actually be helping Tesla maintain its dominance by starving the competition.
The Reality of Tesla Production in 2026
If you go to Austin, Texas, today, the Giga Texas plant is humming. There are no padlocks on the doors.
Tesla's production hasn't been banned; it has been recalibrated. The administration’s focus has shifted toward "Made in America" requirements that apply to everyone. Trump has even suggested he would welcome Chinese companies like BYD to build plants in the U.S., provided they use American labor.
"Let China come in," he said in early 2026, which definitely raised some eyebrows.
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The real pressure on Tesla isn't coming from a ban, but from a mix of new 25% tariffs on imported parts and the removal of the emissions standards that used to penalize companies for making gas-guzzlers. Tesla used to make billions selling "regulatory credits" to companies like Chrysler and GM. Now that those companies don't need the credits as much, that easy revenue stream for Tesla is drying up.
What This Means for the Future
The relationship between Trump and Musk is basically a high-stakes soap opera. One week they are "reunited" at a memorial service or talking about Starlink in Iran; the next, they are trading barbs on social media.
JD Vance has reportedly acted as a peacemaker between the two, trying to keep the "tech-right" alliance together. But for the average person wondering if they can still buy a Model 3 or if the factories are closing: the answer is a firm yes to the car and a firm no to the closure.
Actionable Insights for 2026
If you are following the automotive market or considering an EV purchase under the current administration, keep these points in mind:
- Ignore Viral Video Headlines: If a "ban" or major policy change isn't reported by the primary White House press pool or major financial outlets like the Wall Street Journal, it’s almost certainly a deepfake.
- Budget Without Subsidies: Don't count on the $7,500 tax credit. It’s effectively dead at the federal level, though some states like New York or Colorado may still have local incentives.
- Watch the Tariffs: The cost of EVs may fluctuate more based on supply chain tariffs than on environmental policy. Trump's "Golden Share" approach to American manufacturing means companies are being pressured to move even more of their battery supply chains away from China and into the U.S.
- Market-Driven Pricing: Expect Tesla to continue aggressive price cuts to compensate for the lost tax credits. They are fighting for market share against a resurgent gas-powered market.
Basically, the "Trump bans Tesla" story is a masterclass in how modern misinformation works. It takes a kernel of truth—a very real political rivalry—and inflates it into a lie that sounds just plausible enough to go viral. The truth is boring: it's all about taxes, tariffs, and trade, not dramatic factory shutdowns.
Keep an eye on the Federal Register and official Department of Transportation announcements for actual shifts in fuel economy standards (CAFE), as those will have a much bigger impact on Tesla's bottom line than any social media feud ever could.
Check your sources, look for the "blurry teeth" in the videos, and remember that in the world of 2026, the loudest news is rarely the most accurate.