Tesla Loses Corporate Customer, Citing Musk’s Pro-Trump Stance
By Jake Beardslee ·
August 7, 2024
European drugstore chain Rossmann has announced it will cease purchasing Tesla electric vehicles for its company fleet, citing CEO Elon Musk's public support for Donald Trump. The decision, effective immediately, demonstrates the potential business implications of Musk's political activism. Robert Hanashiro / USA TODAY NETWORK / USA TODAY NETWORK
Raoul Rossmann, a company spokesperson, explained the rationale behind the move: "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." Greg Lovett / USA TODAY NETWORK
While Rossmann's Tesla fleet is relatively small, comprising only 38 vehicles out of their annual 180 electric vehicle purchases, the decision signals a growing concern about Musk's political stance affecting Tesla's brand image beyond U.S. borders. AuHaidhausen / Wikimedia
Musk recently endorsed Trump and contributed to a pro-Trump political action committee he helped establish, CNBC reported. Jay Janner/American-Statesman / USA TODAY NETWORK
This comes at a time when Trump's stance on climate change remains controversial, with the former president having called it a "hoax" and promising to withdraw from the Paris climate agreement if re-elected. Harrison Jones / USA TODAY NETWORK
The move by Rossmann follows recent surveys indicating a decline in Tesla's brand reputation, partly attributed to Musk's public statements and political involvement. Abraham / Wikimedia
Although Tesla reported a 2% increase in overall revenue during the second quarter, its automotive revenue saw a 7% decrease compared to the same period last year. Alicia Devine/Tallahassee Democrat / USA TODAY NETWORK
Tesla's presence in Germany, where it opened a factory in 2022, has already faced challenges from environmental activists concerned about the company's impact on local forests and water resources. Michael Wolf, Penig / Wikimedia
Musk's response to these protests on X (formerly Twitter) further strained relations with some environmental groups. Daniel Oberhaus / Wikimedia
As the 2024 U.S. presidential election approaches, Musk's political activities may continue to influence Tesla's business relationships and brand perception, particularly in markets where climate change action is a priority. Trevor Cokley / Wikimedia
