European drugstore giant Rossmann announced on Tuesday it will no longer purchase Tesla’s electric vehicles for its fleet, effective immediately. This decision follows Tesla CEO Elon Musk’s public support for former U.S. President Donald Trump.
Rossmann, headquartered in Germany, cited the incompatibility between Musk’s political stance and the values represented by Tesla’s products as the reason for their decision. “Elon Musk makes no secret of his support for Donald Trump,” said Raoul Rossmann, a company spokesperson. He emphasized that Trump’s dismissal of climate change as a hoax starkly contrasts with Tesla’s mission to promote environmental protection through electric vehicles.
Despite Rossmann’s relatively small annual purchase of 180 electric vehicles, including 38 Teslas, this move signifies a broader impact of Musk’s political decisions on Tesla beyond the U.S.
Last month, Musk formally endorsed Trump and announced his financial support for America PAC, a pro-Trump group he helped establish. Additionally, Trump revealed that Musk would be interviewing him soon.
During a debate with President Joe Biden in June, Trump avoided discussing his plans to address climate change, continuing to label it a “hoax.” He also reiterated his intent to withdraw the U.S. from the Paris climate agreement if re-elected.
Research by Morning Consult indicates that Musk’s acquisition of Twitter (now X) in late 2022 has increased his favorability among U.S. Republicans. However, this has not translated into higher “purchasing consideration” of electric vehicles among Republicans. Pew Research shows Musk’s reputation among left-leaning voters has declined, even though they are more likely to purchase electric vehicles.
A recent survey highlighted a decline in Tesla’s brand reputation, attributed to Musk’s controversial actions and political statements. Although Tesla’s revenue rose by 2% in the second quarter, automotive revenue fell by 7% to $19.9 billion compared to $21.27 billion in the same period the previous year.
Tesla’s German operations include a factory in Brandenburg, opened in 2022, employing thousands. Rossmann, at the end of 2023, reported over 4,700 stores and more than 60,000 employees, with roughly half based in Germany.
Tesla has encountered protests from environmental activists in Germany, opposing its plans to deforest areas and use water for manufacturing in Brandenburg. In March, Musk criticized these protesters on X, labeling them as “the dumbest eco-terrorists on Earth” or as being manipulated by those with ulterior motives.
Tesla, Musk, and Rossmann representatives did not respond to requests for further comments on Tuesday.
Featured Image courtesy of Asset Securitisation Report
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