Tesla CEO Elon Musk’s ongoing lean into regressive politics is starting to directly affect the EV maker’s business in Europe.
As Fortune reports, Rossman, one of the largest drugstore chains in Europe, cited the mercurial CEO’s support for the former president and climate change denier — who has repeatedly flip-flopped on his stance on electric vehicles — as the reason for suspending Tesla vehicle purchases “with immediate effect.”
In a statement, Rossmann made its reasoning abundantly clear.
“Elon Musk makes no secret of his support for Donald Trump,” the statement reads. “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.”
Tesla’s standing in the EU is already on shaky ground. The company’s sales continue to shrink, with registrations dropping to a 15-month low earlier this year — despite EV adoption rising overall in the region.
In response, the Musk-led company has continued to cut prices to lure in new European fleet buyers. But even that may not be enough, experts argue, a decision that could end up backfiring.
Rossmann’s decision may not have a sizable impact on Tesla’s sales in the EU alone — only 34 of the German chain’s 800 vehicles are Teslas. But its decision could send a strong signal nonetheless.
Software giant SAP also recently announced that it would ditch Tesla for company cars, but cited the EV maker’s fluctuating pricesand other uncertainties as its reason.
US rental car company Hertz has also made headlines for regretting its decision to buy 100,000 Teslas, subsequently trying to offload them with an increasing degree of desperation.
Musk’s endorsement of Trump last month came after the Wall Street Journal reported that he was donating a whopping $45 million a month to a pro-Trump political action committee. Musk first affirmed, then later denied the report.
Musk has even gone as far as to turn his social media network X-formerly-Twitter into a MAGA enclave.
In short, it shouldn’t come as a surprise that companies aren’t willing to do business with Tesla. Besides, particularly outside of the US, the carmaker’s competition continues to grow considerably, giving its commercial customers plenty of alternatives.
It’s a precarious situation as Tesla’s sales continue to tank. Last month, the company posted its second-quarter earnings, revealing that its net income fell an astonishing 45 percent compared to a year ago, the second consecutive quarterly decline.
Was endorsing Trump really the best idea Musk could come up with? Given his increasingly polarizing and extremist views, Tesla has quickly become an extension of a fringe political movement that has European businesses shaking their heads in disgust.
More on Tesla: Large Company Says It Won’t Purchase Any More Teslas Due to Elon Musk’s Erratic Behavior
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