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Home Technology

Elon Musk’s Trump support pushes a company customer away from Tesla

INBV News by INBV News
August 7, 2024
in Technology
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Elon Musk’s Trump support pushes a company customer away from Tesla
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Model Y cars are pictured throughout the opening ceremony of the brand new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. 

Patrick Pleul | Pool | Via Reuters

European drugstore giant Rossmann announced Tuesday it is going to now not buy Tesla‘s electric vehicles for its fleet, effective immediately, citing CEO Elon Musk’s pro-Trump political support.

Rossmann, based in Germany, said in an announcement that its decision was “based on the incompatibility between the statements of Tesla CEO Elon Musk and the values ​​that Tesla represents with its products.”

“Elon Musk makes no secret of his support for Donald Trump,” Raoul Rossmann, a spokesperson for the corporate, said in an announcement. “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 electrical cars.”

While Rossmann only purchases about 180 electric vehicles a yr — and only had 38 Teslas in its fleet, in accordance with Bloomberg — the corporate’s decision to chop all Tesla EV purchases shows that Musk’s political decisions have begun to affect the automaker well beyond the U.S.

Musk formally endorsed Trump last month, and said he was contributing funds to a pro-Trump group he helped create called America PAC. Musk can also be slated to interview the previous president, Trump announced Tuesday.

During a debate with President Joe Biden in June, Trump dodged questions about what he would do, if anything, to combat climate change. And Trump has called climate change a “hoax.” He has also promised to withdraw the U.S. from the Paris climate agreement, as he did during his presidency, if he’s elected in November.

In accordance with ongoing research by Morning Seek the advice of, Republicans within the U.S. began to view Musk more favorably following his leveraged buyout of Twitter (now generally known as X) in late 2022. Nevertheless, this has not driven a rise in Republicans’ “purchasing consideration” of electrical vehicles here. In accordance with Pew Research, Musk’s repute with left-leaning voters has declined regardless that they’re way more more likely to purchase an EV.

Rossman’s decision follows a recent survey that found a deterioration in Tesla’s brand, attributed partly to Musk’s “antics” and “political rants.” While Tesla’s revenue increased 2% throughout the second quarter, automotive revenue dropped 7% to $19.9 billion from $21.27 billion in the identical quarter a yr ago.

Tesla opened a factory in 2022 in Brandenburg, Germany, (outside of Berlin) and employs hundreds within the country. At the top of 2023, drugstore chain Rossmann reported that it had greater than 4,700 stores and greater than 60,000 employees with about half in Germany.

Tesla has faced protests by environmental activists in Germany who took issue with the corporate’s plans to chop down a part of a forest and to make use of water for manufacturing in Brandenburg. Musk lashed out at protesters there, saying on X in March they’re “either the dumbest eco-terrorists on Earth or they’re puppets of those that do not have good environmental goals.”

Tesla, Musk and representatives for Rossmann didn’t reply to requests for further details on Tuesday morning.

Correction: This text has been updated to correct the day when Tesla, Musk and representatives for Rossmann didn’t reply to requests for further details.

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