Tesla faces backlash in Europe over Musk's Trump endorsement
Tesla is experiencing significant repercussions in its European business, due to CEO Elon Musk's endorsement of Donald Trump. Rossmann, one of Europe's largest drugstore chains, has suspended its purchases of Tesla vehicles "with immediate effect," citing Musk's vocal support for Trump as the reason behind this decision. This move marks a notable shift in corporate response to Musk's political stance.
Rossmann suspends Tesla purchases
Rossmann currently owns 34 Teslas out of its 800-vehicle fleet and plans to continue using these vehicles for "sustainability and resource conservation." The company's spokesperson, Raoul Rossmann, stated on the company's site that "Elon Musk makes no secret of his support for Donald Trump. Trump has repeatedly described climate change as a hoax—this attitude is in stark contrast to Tesla's mission to contribute to environmental protection through the production of electric cars."
Other European firms follow suit
Rossmann's decision is not an isolated incident. Other European companies have also canceled orders from Tesla due to various reasons. Software giant SAP discontinued offering Teslas as company cars, because of uncertainties caused by Musk's frequent price cuts. This trend indicates a growing concern among businesses about the implications of Musk's political affiliations on their partnerships with Tesla.
Tesla's sales drop amid strong competition in Europe
The European EV market, larger than that in the US, has seen a decrease in demand due to strong competition and fewer subsidies. This has significantly impacted Tesla, with the region's largest countries reporting sharp drops in sales for the first seven months of the year. These market challenges add to the difficulties faced by Tesla as it navigates the fallout from Musk's political endorsement.
Musk's stance on clean technology and climate change
Musk's position on clean technology remains unclear. His companies have been instrumental in scaling up EVs, which are seen as a key step toward a green transition. However, Musk has also stated that the "climate change alarm is exaggerated in the short term," and his frequent use of private jets makes him a significant polluter. This ambiguity adds another layer of complexity to Tesla's current challenges in Europe.
